Many people today have reached the age of retirement and are collecting their retirement but at the same time working full time. Segal Cohen & Landis reviews how this affects your taxes. Segal Cohen & Landis reviews the rules. Once you reach retirement age the question of whether your Social Security payments are taxable depends on two things. One, your filing status and two how much other income you receive.
Segal Cohen & Landis reviews the process of figuring out how your taxes will be affected. Segal Cohen & Landis reviews the steps. The first step is to check your federal form SSA-1099 for the total of your benefits. Once you have that number here are a few more pointers. Segal Cohen & Landis reviews the second step.
If your only source of income is from your Social Security Benefits, your benefits are not generally taxable according to Kelly Phillips at Forbes. Segal Cohen & Landis reviews Phillips knowledge. However, if you received income from other sources, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status. Whether or not the income is taxable is based on a formula.
Segal Cohen & Landis reviews the formula. One version of the formula is to add one-half of the total Social Security benefits you received (what is reported on the form SSA-1099) to all your other income, including any tax exempt interest and other exclusions from income. Then compare this total to the base amount for your filing status:
Segal Cohen & Landis reviews the base amounts (which are never adjusted for inflation):
- $32,000 for taxpayers who file as married filing jointly;
- $25,000 for taxpayers who file as single, head of household, qualifying widow/widower with a dependent child, or married filing separately who did not live with their spouses at any time during the year; and
- $0 for married persons filling separately who lived together during the year.
If the total is more than your base amount, some of your benefits may be taxable.
These tips are not legal advice.Segal, Cohen & Landis 9100 Wilshire Blvd. Ste. 601E Beverly Hills, CA 90212 (310) 285-3999