when you retire, do you pay taxes on your social security benefits?

Question

and do you pay in on social security after you retire (while you are getting it)?

wow, a few good answers there....I'm only 51 (only, gees). but I will get about 22,000 in SSI as well as nearly 20,000 pension when I am 69. I have some savings in work 547 or what ever those pre-tax accounts are called...and I figure on 50,000 total income if all goes the way my spreadheets tell me. so according to you guys (especially "taxman"...(ask a tax man)...I would have to pay taxes on $12,000 even in retirement...This is without actual wages, only surviving on retirements and savings

there is some cost of living in my $50,000 figure, so I would imagine that the $25,000 cap will be higher as well due to inflation

Answer 1

There are two types of Social Security, SSI and OASDI. When you collect Social Security because of Old Age or Disability, you get OASDI. SSI is never taxable income. OASDI can be taxable depending on other income. If all your income is from Social Security, you'd have to have over $50,000 per year before it would be taxable. However, if you have other income, the threshold drops.

Basically, you figure out whether it is taxable by the following formula:

Take your yearly OASDI and divide by 2. Add to that your taxable income (interest, dividends, taxable portion of IRAs, taxable portion of pensions, etc.). Finally, add your tax-free income like municipal bond income.

If the above is more than $25,000, then a portion of your OASDI is taxable. If so, there are forms at www.irs.gov to figure out what that percentage is. Or, you could buy some tax software (Tax Cut, Turbo Tax), or visit a tax preparation office.

Answer 2

1

Answer 3

2

Answer 4

Social security counts as income, and if you get enough of it or you get taxable income from other sources (such as a pre-tax retirement plan (like traditional IRA or 401k) or a pension plan), you will pay regular income taxes like everyone else (federal+state+local). The answer above is right, generally people receiving just social security benefits don't get enough to pay any taxes.

I think social security and medicare taxes are only paid on wages. So when you retire (i.e., stop working), you won't pay social security tax. If you continue working and receiving pay, you will pay social security and medicare tax out of that amount only.

Answer 5

Actually the correct answer is depends on how much you get a year.
If the payments equal more then a limit that is given to you a year then yes you do pay taxes on benefits.
Most people on SS do not meet the taxable guidelines.
If your retired then you can still work on a part time basis not to exceed your monthly limit.
yes you still pay into SS and all other taxes as required from your state from your pay checks.
Plus you also get medicare that will take about 90.00 bucks a month from your check to cover medical. You also can get other coverage to cover prescriptions. Depending on the coverage provider there maybe a monthly premium for that as well.

Answer 6

I'll need to know that, also. This is my last year to report a W2 for wages earned in 2011. EDIT *** I have just checked. You will receive a SSA-1099 statement in the mail from SS. On the back it tells you if you have to file or not. Just figure out the simple form and if you only have SS as an income, you probably won't need to file at all. Flower has the correct answer .......

Answer 7

Social Security Disability Information - http://DisabilityHelp.siopu.com/?fNQ

Answer 8

No you do not.

Answer 9

no

Answer 10

no.