Do any of you pay taxes on SS benefits?

Marie5656

Marie5656

SF VIP
Location
Batavia, NY
I was just reading over the letter I got regarding my SSD. In the letter it says "You MAY be taxed of you and your spouse make more than $32,000. My husband makes about $28,000. So, combined with my disability checks, does that mean I will be taxed? What about next year when he is retired?
Guess I go to the website.
 

Yep. Just doing our taxes today and we were getting a refund of $1,700 until I added in our SS benefits. Now we owe $77.00. That figure will change by the time I`m finished, but I`m at a standstill because there was a huge error on the statement our property management company sent us for our rental property. From what I can tell they sent only a six month statement but called it twelve. Not sure how they did that....
 

Marie5656 said:
I was just reading over the letter I got regarding my SSD. In the letter it says "You MAY be taxed of you and your spouse make more than $32,000. My husband makes about $28,000. So, combined with my disability checks, does that mean I will be taxed? What about next year when he is retired?
Guess I go to the website.
Click to expand...


it is based on magi which is your combined income less certain credits and above the line deductions
 
The amount of income it takes to trigger taxes on your SS income increases at certain ages. You get a statement like you got each year that tells you how much it is.
 
Hold on everybody. Disability income is not taxable income unless you receive SSDI (not SSI).

"For the majority of people, Social Security Disability benefits are not taxable. This is true for people who have income in addition to disability benefits as well as those who do not. (Most of the one-third of disability recipients who do pay taxes on benefits receive SSDI benefits, not SSI."
 
still an issue:

ssi is not taxable ,
ssdi is calculated in to the magi testing for the total income to see if the regular ss check of the spouse is taxed . if the total of the regular ss and disability are over the limit the regular ss is taxed .


  • Social Security Disability Income (SSDI) versus Supplemental Security Income (SSI). SSDI is paid from the Social Security Trust Fund to totally disabled individuals who have worked long enough and paid Social Security taxes. Dependent children may also receive SSDI if a parent receives it. On the other hand, SSI is not a Social Security benefit; it is a supplemental income program designed to help the elderly, the blind, or people with disabilities who have little or no income. Like other sources of Social Security income, SSDI is included in MAGI-based income for tax filers.

Regarding your Social Security benefits taxable question, all Social Security benefits are taxed in the same way. This is true whether they're retirement, survivors, or disability benefits.
Regarding SSDI taxable income concerns, none of your Social Security disability income (SSDI) is taxable if half of your SSDI plus all your other income is less than:

  • $25,000 if you filed as single, head of household, or married filing separately, and you and your spouse lived apart all year
  • $32,000 if you’re married filing jointly
  • $0 if you’re married filing separately, and you and your spouse lived together at all during the year
Up to 50% of your SSDI is taxable if your income is more than those amounts. Also, up to 85% of your SSDI is taxable if half of your SSDI plus all your other income is more than:

  • $34,000 if you filed as single, head of household, or married filing separately, and you and your spouse lived apart all year
  • $44,000 if you’re married filing jointly
  • $0 if you’re married filing separately, and you and your spouse lived together at all during the year
 
Now I am just more confused. I guess I will call my accountant in a week or so. He always takes a week vacation at end of tax season. Thanks for your input.
 
Yes on taxed
Soc. Sec. With no deductions and a significant income we do a nice job of pumping money into the economy via the federal gov. to spend on people that are not as fortunate as we are.
 
Interesting differences between the USA and the UK I see here. We have a universal 'state pension' that everyone gets regardless of other income. It kicks in at 65 (going up soon I think). This is however taxed as part of any other income (e.g. work pension, investments etc). It is only around $200 a week but it can make a big difference to those who have not saved or made private arrangements.

I have found that my personal tax has become a lot more complicated since I retired as I have several income streams. When I was working our automatic PAYE (pay as you earn) system meant I didn't have any forms to fill on for thirty years or more! I now realise what a luxury that was!
 
mathjak107 said:
still an issue:

ssi is not taxable ,
ssdi is calculated in to the magi testing for the total income to see if the regular ss check of the spouse is taxed . if the total of the regular ss and disability are over the limit the regular ss is taxed .


  • Social Security Disability Income (SSDI) versus Supplemental Security Income (SSI). SSDI is paid from the Social Security Trust Fund to totally disabled individuals who have worked long enough and paid Social Security taxes. Dependent children may also receive SSDI if a parent receives it. On the other hand, SSI is not a Social Security benefit; it is a supplemental income program designed to help the elderly, the blind, or people with disabilities who have little or no income. Like other sources of Social Security income, SSDI is included in MAGI-based income for tax filers.

Regarding your Social Security benefits taxable question, all Social Security benefits are taxed in the same way. This is true whether they're retirement, survivors, or disability benefits.
Regarding SSDI taxable income concerns, none of your Social Security disability income (SSDI) is taxable if half of your SSDI plus all your other income is less than:

  • $25,000 if you filed as single, head of household, or married filing separately, and you and your spouse lived apart all year
  • $32,000 if you’re married filing jointly
  • $0 if you’re married filing separately, and you and your spouse lived together at all during the year
Up to 50% of your SSDI is taxable if your income is more than those amounts. Also, up to 85% of your SSDI is taxable if half of your SSDI plus all your other income is more than:

  • $34,000 if you filed as single, head of household, or married filing separately, and you and your spouse lived apart all year
  • $44,000 if you’re married filing jointly
  • $0 if you’re married filing separately, and you and your spouse lived together at all during the year
Click to expand...

This is correct according to my accountant.
 
actually because getting ss taxed involves two moving targets a retiree can actually take an extra 1K out of an ira , jump brackets and end up seeing a 46% marginal effective tax on that 1k .

[FONT=Lato, sans-serif]michael kitces looked in to this effect.

[/FONT]https://www.kitces.com/blog/the-taxation-of-social-security-benefits-as-a-marginal-tax-rate-increase/[FONT=Lato, sans-serif]


[/FONT]
 
Butterfly said:
I agree, that's the way this reads.
Click to expand...
I have re-read my post several times and I am still at a loss as to how it could be interpreted as saying taxes increase by age on SS. Here is what I said:

"The amount of income it takes to trigger taxes on your SS income increases at certain ages. You get a statement like you got each year that tells you how much it is."

What I said increases at certain ages is the amount of income it takes to trigger taxes on your SS income. And trigger means to cause SS income to be taxed. Below the trigger amount you don't get taxed on your SS income. Somehow I think what I said was mentally parsed to this:

"... taxes on your SS income increases at certain ages. You get a statement like you got each year that tells you how much it is."

LOL
 
dpwspringer said:
I have re-read my post several times and I am still at a loss as to how it could be interpreted as saying taxes increase by age on SS. Here is what I said:

"The amount of income it takes to trigger taxes on your SS income increases at certain ages.

LOL
Click to expand...

this ...... that is why now two of us commented on the same thing . what you may be thinking may be different than this imply's .
 
mathjak107 said:
this ...... that is why now two of us commented on the same thing . what you may be thinking may be different than this imply's .
Click to expand...
Well somebody has reading comprehension problems because that does not say what you keep claiming it says. It is a little unsettling for someone to keep correcting me for saying something I did not say. And I don't care how many people agree with you, because it still does not say that.
 
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