Social Security Benefits Taxed

[taxguy057]

Is there any age limit to where a person is not taxed on their SS benefits if they are receiving them or is it still all based of of base incomes for the different marital status??

Thx!

TG

[Lion EA]

The latter. Age doesn't let you off the hook. Unless you're not aging anymore.

[mcb39]

Same arguement every year with someone. I had to tell a client this morning that it doesn't matter if you are 90, if you have too much income, your SS will be taxed proportionately.

[taxguy057]

The latter. Age doesn't let you off the hook. Unless you're not aging anymore.

lol! good one lion... :P

[taxguy057]

Same arguement every year with someone. I had to tell a client this morning that it doesn't matter if you are 90, if you have too much income, your SS will be taxed proportionately.

I always wonder where people come up with this thing of when you retire and turn age 65+ you can make as much money as you want and SS will not be touch... :wall:

[BulldogTom]

I always wonder where people come up with this thing of when you retire and turn age 65+ you can make as much money as you want and SS will not be touch...

It comes from the SS rules on income. After you reach a certain age (I think it is 70), you can earn as much money as you want without having your SS benefits reduced. Over time this explanation has morphed into the belief that you don't have to pay taxes on your SS after you reach that age.

Tom

Lodi, CA

[TaxmannEA]

I still have people telling me that you don't have to file taxes after you reach 70&1/2 or 72. These things die hard!

[taxguy057]

It comes from the SS rules on income. After you reach a certain age (I think it is 70), you can earn as much money as you want without having your SS benefits reduced. Over time this explanation has morphed into the belief that you don't have to pay taxes on your SS after you reach that age.

Tom

Lodi, CA

OHHHHHHH!!!! DING!! Now I got it.... :P

[RitaB]

Same arguement every year with someone. I had to tell a client this morning that it doesn't matter if you are 90, if you have too much income, your SS will be taxed proportionately.

Yeah, and then that old codger makes it to 91 just to spite you.

[Randall]

They confuse the two rules, one regarding taking it back if you have a certain amount of earnings and are under the full retirement age (66/67) and the other rule about it being taxable (up to 85% of it).

[Jim Oh Bkkr]

And let's not forget: "I don't have to pay Social Security because I'm already drawing it!"

Even had a payroll client call me to complain. "Don't withhold SS on Employee X, because she said 'she doesn't have to pay it anymore'."

I should've been a barber.

Jim

[mcb39]

had another one last night. Took $10 K out of retirement to pay for a camping trailer; no tax withheld. "But, I thought you didn't have to pay taxes on SS". So, now they will pay 15% tax on this money when they could have taken out a loan for 5 or 6% and deducted the interest as they are able to itemize. They will also pay tax on 23 K of SS. I told my husband that I wish some of these people would go somewhere else. And, why do they wait until the last week?......because they know they are going to have to pay, but then they try to make it sound like it is the preparer's fault. UGH!

End of vent......back to work on the clients who appreciate me.