What is Social Security income based on?
2007-07-26 02:31:32 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
If you have not reached full retirement age and are receiving Social Security benefits, you can earn wages of up to $12,960 without having your benefits reduced. Any amount you earn over that limit will reduce your benefits $1 for every $2 over that limit.
The wages have to be subject to SS and Medicare, either from employment or self-employment.
If you are taking distributions from an IRA (whether qualified or not), these distributions are not subject to SS and Medicare taxes. So the distributions are not part of the $12,960 limit.
If your traditional IRA distributions plus 1/2 of your SS benefits are more than $25,000 ($32,000 if married), then your SS benefits are going to be partially taxable, even though they may not have been reduced by the earnings limitation.
2007-07-26 06:12:09 · answer #1 · answered by ninasgramma 7 · 2⤊ 0⤋
I think you are talking about the earnings limit after which you need to pay back some of your social security income. That only includes earned income from work. Income that will be reported on a W2 or if you are self employed, subject to self employment tax.
2007-07-26 04:36:34 · answer #2 · answered by Chaney Lake Girl 2 · 3⤊ 0⤋
$2639 Social Security Disability : http://DisabilityHelp.siopu.com/?Npc
2017-04-04 03:14:00 · answer #3 · answered by Sheri 3 · 0⤊ 0⤋
I believe that would be correct. It is only earned income not investment income.
2007-07-26 02:35:25 · answer #4 · answered by Don 5 · 3⤊ 2⤋
Right.
2007-07-26 02:38:54 · answer #5 · answered by ed 7 · 2⤊ 2⤋