my aunt is concerned about taxes as she is 66 and is receving social security and now has a job making 200.00 a week.
Any answers on this one?
2007-10-14 03:29:39 · 7 answers · asked by cb 2 in Business & Finance ➔ Taxes ➔ United States
Not to worry. Your aunt has reached full retirement age and there is no limit to what she can earn. She will still receive her full Social Security benefits.
However, if (assuming she is unmarried), her
Income + 1/2 of her SS benefits
gets to be greater than $25,000, she will pay taxes on some of her SS benefits when she files a tax return. But if the number above is less than $25,000 she will not pay any taxes on her SS benefits.
If she makes under $10,500 year, then she will not have to file a tax return. If she is making $200 a week and has no other income (except her SS), she can put "exempt" on her W-4 and have no taxes taken out of her pay.
2007-10-14 08:47:26 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
If she is 66, she has already reached "full retirement age", since, for anyone born in1954 or earlier, it is 66 or less. Therefore the SS earnings limit does not apply.
To determine whether any of her SS will be taxable, see the worksheet on page 28 of the 2006 1040 Instructions, which you can download at irs.gov.
2007-10-14 06:48:14 · answer #2 · answered by r_kav 4 · 0⤊ 0⤋
Her income is under the amount where they'd reduce her social security because of her earnings.
Once she reaches full retirement age, and she must be very close, she can make any amount without a ss reduction.
Whether or not she owed taxes on any of her social security benefits depends on her filing status and her total income. If the numbers you give are her total income, she'll likely owe a little tax on her earnings, but not on her ss.
2007-10-14 06:16:30 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
After age 65 (or when full benefits are available), SS benefits are not reduced by earned income. However, all income is included in the incidious 'provisional income' calculation that adds together all earned income, tax free bond income, and 50% of the SS income to determine what amount of the SS income might be taxed.
Go to www.irs.gov and put 'provisional income calculation' to get the answers.
2007-10-15 01:18:10 · answer #4 · answered by TheProfessor 2 · 0⤊ 0⤋
If she is receiving SSI or disability payments, it could cause a reduction in her benefits. If she is retired and collecting her social security check from working for a lifetime, then there is probably no issue here. Call SSA and ask your hypothetical question, but do not identify yourself. The answer may be on their website as well SSA.gov
As for taxes check IRS.gov or ask confidentially.
Good luck.
2007-10-14 03:42:17 · answer #5 · answered by Tellin' U Da Truth! 7 · 0⤊ 0⤋
Check with the IRS each year to see how much of her social security income becomes taxable. It changes each year.
Here's the Pub 17 for 2006 (2007 won't be out for a couple of months). See page 76.
http://www.irs.gov/pub/irs-pdf/p17.pdf
2007-10-14 05:14:00 · answer #6 · answered by Anonymous · 0⤊ 0⤋
under 2007 rules she can make 12,960.00 without effecting her benefits
2007-10-14 03:40:36 · answer #7 · answered by Jan Luv 7 · 0⤊ 0⤋