Suppose I retire and start collecting Social Security benefits, but I also work part time and earn income. Ignoring any income taxes taken out of my pay, does Uncle Sam also still take social security tax from my wages even though I am now a beneficiary of the system?
TIA
2007-10-19 20:04:28 · 14 answers · asked by rvirzi2000 1 in Business & Finance ➔ Taxes ➔ United States
I know the rules of how federal income tax is determined after retirement. What I want to know is will I still be paying into the social security fund even after I start collecting social security myself.
2007-10-19 20:24:34 · update #1
Yes. All earned income is subject to Social Security and Medicare taxes, regardless of your age or retired status. You get no exemption just because you are already collecting Social Serurity.
Since you are still working, your annual wages will factor into the calculation of your Social Security benefits so you should see some increase in your Social Security benefits, over and above the annual cost of living adjustment.
2007-10-20 05:27:54 · answer #1 · answered by Bostonian In MO 7 · 3⤊ 0⤋
This Site Might Help You.
RE:
Do I have to pay social security taxes after I retire?
Suppose I retire and start collecting Social Security benefits, but I also work part time and earn income. Ignoring any income taxes taken out of my pay, does Uncle Sam also still take social security tax from my wages even though I am now a beneficiary of the system?
TIA
2015-08-10 07:20:19 · answer #2 · answered by Phaidra 1 · 0⤊ 0⤋
Yes, you will still be paying into the Social Security system even though you are a beneficiary. The tax is based only on wages or income from self-employment.
But there is a possible benefit for you. When you continue to work after beginning to receive benefits, your benefits are recalculated each year considering your earnings for the previous year. Your benefits may increase due to your earnings after retirement.
2007-10-20 02:19:48 · answer #3 · answered by ninasgramma 7 · 3⤊ 0⤋
Anyone who has a job or net earnings from self employment of at least $400 must pay social security taxes.
It doesn't matter if you are receiving benefits or not.
If you are less than the full retirement age your benefit can be adjusted downward, some where around $13K you will start losing $1 of benefit for every $2 you earn.
2007-10-20 01:39:34 · answer #4 · answered by Charlie & Angie G 4 · 2⤊ 0⤋
You will have to pay social security and medicare taxes on any post-retirement income but doing so will also increase your social security benefits.
2007-10-20 02:18:58 · answer #5 · answered by Anonymous · 3⤊ 0⤋
EARNED income (salary, wages, tips, etc.) is subject to social security tax. Pensions and interest or investment income are not subject to social security tax.
2007-10-19 22:55:23 · answer #6 · answered by Anonymous · 1⤊ 0⤋
If you work, even part time, yes social security will be taken out of your pay, no matter how old you are.
2007-10-20 04:58:25 · answer #7 · answered by Judy 7 · 1⤊ 0⤋
ret. at 66 yrs.old, on social sec. I want to work p.t. and make $1,100, monthly. How will this affect taxes at end of year.What deductions should I put on W-2 so I don't pay a lot at year end.
2015-06-03 08:23:21 · answer #8 · answered by Darwen & Jan 1 · 1⤊ 0⤋
Social Security Disability Evaluation - http://DisabilityHelp.siopu.com/?znE
2017-04-05 09:37:48 · answer #9 · answered by ? 3 · 0⤊ 0⤋
All income is NOT taxed when you receive benefits. It could be or it could not be. For a single person, your benefits will not be taxable unless the total of your modified AGI, plus one-half of your Social Security benefits, exceeds $25,000. If you are married and file a joint return, your modified AGI plus one-half of your Social Security benefits would need to exceed $32,000 before taxes kick in. If you are married filing a separate return, and you lived with your spouse, your threshold is actually zero, and your Social Security benefits may be taxable from dollar one.
2007-10-19 20:19:22 · answer #10 · answered by momusmusic 2 · 0⤊ 3⤋