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  1. #1
    Join Date
    Jan 2015
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    1

    Default What is the Federal Tax on Social Security Retirement Benefits if You're Employed

    I
    will turn 66 on oct.15.do not make over 41,000 yr. my benefit for age 65 is 1,730 if i draw now would the benefit go up when i turn 66 which is 1,821
    what is the % of federal tax on benefits

  2. #2
    Join Date
    Oct 2006
    Posts
    15,937

    Default Re: What is the Federal Tax on Social Security Retirement Benefits if You're Employed

    Quote Quoting djgriff49
    View Post
    I
    will turn 66 on oct.15.do not make over 41,000 yr. my benefit for age 65 is 1,730 if i draw now would the benefit go up when i turn 66 which is 1,821
    what is the % of federal tax on benefits
    Whether or not any of your social security benefits will be taxed is a complicated calculation. For a single person, you would add up 1/2 of your social security benefits plus all of the rest of your income. If that figure is under 25,000 then none of your social security is taxable. If that figure is over 33,000 then 85% of your social security is taxable. Between 25k and 33k the percentage gradually increases. The figures for a married couple are approx 34,000 and 44,000.

    Therefore, there is no exact answer that can been given without your exact income information for the year in question.

  3. #3
    Join Date
    Oct 2014
    Posts
    7,627

    Default Re: What is the Federal Tax on Social Security Retirement Benefits if You're Employed

    Quote Quoting djgriff49
    View Post
    I
    will turn 66 on oct.15.do not make over 41,000 yr. my benefit for age 65 is 1,730 if i draw now would the benefit go up when i turn 66 which is 1,821
    what is the % of federal tax on benefits
    There are two parts to this. The first is determining how much of the Social Security benefit is taxable in the first place. IRS Publication 915 discusses this in detail.

    The second part is determining how much tax you end up paying on whatever part is taxable. What the tax rate is depends on your total income. The best way to determine this would be to first figure your tax without the Social Security benefits included and then what your tax is with the benefits included. Computer tax prep programs make doing that sort of thing very easy. The difference is the tax that resulted from the taxable Social Security benefits. From there you can figure what the tax rate was on those benefits, i.e. the marginal tax rate that applied to that income.

  4. #4
    Join Date
    Nov 2013
    Posts
    6,670

    Default Re: What is the Federal Tax on Social Security Retirement Benefits if You're Employed

    Quote Quoting djgriff49
    View Post
    I will turn 66 on oct.15.do not make over 41,000 yr. my benefit for age 65 is 1,730 if i draw now would the benefit go up when i turn 66 which is 1,821
    If you start taking your benefits at 65 ($1,730) they will not increase when you reach 66 except for a small cost of living increase each year.

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