Here's How Much Will Your Social Security Be Taxed... Again...

preview_player
Показать описание
A lot of rumors swirling around Social Security. More specifically, how Social Security is taxed. You were already taxed with FICA taxes to earn Social Security, and now it can be taxed... again?!

The answer is yes, up to 85% of your Social Security income may be taxable. We'll walk you through how it all works.

How much of your Social Security that will be taxable depends on how much other income you make. This video will show you how to determine how much of your Social Security income will be taxable, and exactly what that means.

You can download the spreadsheet we use here:

=============================
Want help with your Social Security Strategy?
Email me!

Join our newsletter:
====================================

This video is NOT sponsored.

The Retirement Nerds is the no-cost educational platform and serves to offer information around Medicare, Social Security, Financial Planning, and Estate Planning.

⏰ TIME CODES ⏰
0:00 Intro
0:52 Taxable Definition
1:45 Chart Instructions
5:13 Scenario 1: Social Security Income Only
6:34 Scenario 2: Some Other Income
8:00 Scenario 3: Higher Other Income
9:24 Summary of Scenarios
9:42 State Exceptions
10:11 Strategies to Use

=============================
#socialsecurity #taxes #socialsecuritytaxes #90daysfromretirement

Federal Disclaimer:
Рекомендации по теме
Комментарии
Автор

Please note that the deduction cell in the spreadsheet is editable and it is NOT tied to your single/married status for a few reasons:
1. The standard deduction changes every year, so by making this an editable box, you can use this spreadsheet this year, next year, and as long as Social Security taxation works the way it does.
2. The deduction changes based on how old you are, so for those above 65, you can put in you deduction while those under 65 can use theirs.
3. Many people do not take the standard deduction, and itemize their deduction instead. Since this field is fully editable, that means the spreadsheet will work for these folks as well.

Hope this helps :)
Isn't an error. It is intentional.

Theretirementnerds
Автор

I started my SS at 62 1/2, my wife who is 20 months younger than me started at 62. With my pension for working 25+ years we’re doing just fine.That was over 3 years ago & we never looked back. Haven't touched our investments other than to travel. I had two brothers die of cancer 3 years apart. One died at 62 & never drew a dime of his SS. The other died at at 65 & drew 10 months. Let's be honest here, the reason the Government is offering you a bigger payday at 70 is because they're banking on you not making it!

alihossan
Автор

It is absolutely criminal that those taxable thresholds are not, and have never been, adjusted for inflation.

ziggy
Автор

Neither social security nor any other public pension (govt/military pensions) should be taxed by state, local or federal, in my opinion.

mr-vet
Автор

Almost 80 and give my entire Social Security income, and more back to the government every April 15th. This is called the penalty for working hard and being successful. I have never had a tax refund in 60 years. So tired of paying for those who won't help pull the load.🙄

gladegoodrich
Автор

AMAZING content, best description ever of how SS is taxed. Way to go.

bethbyerlein
Автор

Wow, why haven’t they adjusted the threshold since 1984? That’s absolutely ridiculous.

Hbd
Автор

Colorado no longer taxes ANY SS income. It's a recent change.

justaviewer
Автор

My head is kinda spinning. Will rewatch again. Hopefully I totally get it after the next viewing! :)

Luv these videos!

harveyh
Автор

I have prepared taxes, ad a paid professional, for 22+ years. Best explanation I have ever seen in explaining how SS is taxed by the IRS.

johnkaczinski
Автор

We need to STOP taxing Social Security benefits period!

Medmann
Автор

I volunteer as a TaxAide consultant at our Senior center, I have been asked many times "what part of my Social is Taxed" I usually say something vague, like it's way complicated! And they look at me like I am a dunce. - Now I have an explanation. Thanks

larrynorth
Автор

Thanks for sharing this information. We just recently retired and looking at how SS is being taxed. Very helpful.

ChungPhan-bw
Автор

This is great! Cleared up so much for me. I hate to admit it, but I was one of those that thought the taxation happened at the discrete boundaries, such as 50% and 85%. I thought I'd have to pay tax on 85% of my social security, and it turns out, the amount is far less than that for me. This is my first year on it, and I ended up (prior to watching your super helpful video) having taxes voluntarily withheld at a much higher rate than I needed to. I should get a nice refund for this year, but next year, I'll be wiser - no point in lending the government money until getting a refund. I think I get misled because IRMAA uses fixed, discrete boundaries... one penny over and you are toast and have to pay the entire extra surcharge, so I think I wrongly assumed that SS would work that way, too. Thanks again!

robannmateja
Автор

Just want to say thank you for the video and spreadsheet. I have been looking and looking and looking for a detailed explanation of how SS benefits are taxed (along with calculations) that goes beyond just an explanation of provisional income. The spreadsheet went a little haywire when I tried to change it to single but I was able to get it to work and confirmed my calculations. You're out here doing god's work, my friend.

rachelee
Автор

This is so bad. Not only the tax that is taken away, IRMAA gets triggered based on this provisional income. Thank you for this informative video.

katec
Автор

Great video as usual, Erik. I used your original video about SS taxes to calculate both my sister's taxable SS and my own (joint return) for 2023. With the help of your video I estimated her taxes for 2023 and when I actually did her taxes, I was within $2 of the final amount of her refund. For my own (a joint return) I was within $5 of our final amount owed/refunded after I did the taxes. (I'm in Texas so we have no state income tax to worry about.). Again, thanks for much for your helpful videos. I'll also be downloading the spreadsheet that you created. Let me know if you ever get licensed in Texas so in case I change my Medicare supplement, I can use your company.

tomm
Автор

Best video I Ave seen on this yet. I made my own spreadsheet from watching Jeff S videos. I never knew that it was the lesser of the two. That explains why one year it was the full 85% and the next it was progressive. Thank you.

tomr
Автор

Thank you so much for this second video! It took a little while studying the spreadsheet before I got most of it from the first video. But I invest all of my retirement money (at least for now) into Roth accounts, and I was super confused about how that was going to fit into the calculations; it’s nice to know I could have a close to 0% tax rate by retirement since my Roth income wouldn’t be included in the calculations!

I’m only 27, but I enjoy learning about all this now and I honestly should’ve pursued a career in accounting or finance 😆 I love the deep dives and attention to detail you have in your videos!

reeceball
Автор

When you said Social Security wasn't taxable until 1984, I had to see who was President. It was Ronald Reagan.

spicycopper