Your Social Security Isn’t Being Taxed If This is You

I got called out by a subscriber... But in this video, I show exactly how my math is correct for Social Security taxation.

DISCLAIMER: This video is not meant to be taken a tax, legal, or investment advice. All content is for educational purposes only.

#howmuchtoretire #retirement #retirementplanning

[philip]

That’s not the whole picture! The standard deduction will nullify the AGI, making the 15k or so TAX FREE ! Just use standard tax software, plug in the number and you’ll get the same result.

[hillbillyinpa]

Very good message that is hard to find elsewhere. I am retired not on SS yet and consider myself well versed on the ins and outs of retiring. It took me a while to understand that SS was bracketable because most information (including the IRS) only make statements such as "up to 50% is taxable" leading one to believe that it was an all or nothing game.

[rickstephan]

Short comment: This video just highlighted an issue with my current tax planning around SS (planning on age 62 for a variety of reasons). Thanks Jacob.
Long comment: I’m a lifelong personal finance software user (one of the best choices of my life). It started in the late 80s with a product called Dollars & $ense. Today, its Quicken Classic and it has a Tax Planner feature. I decided to start with a new, clean file and plug your examples into the TP, which did not align. Upon further research, I found this at Quicken Support: "Currently, the Tax Planner doesn't automatically calculate the taxable portion of your Social Security benefits." I have some additional numbers to crunch (not using Quicken).

[harveyclayRealtor]

Great info Jacob. I sent you an email with questions related to a similar scenario.

[bertde]

I suggest you do a video showing a high earner's AGI of $150K and show that indeed all of the full 85% of their SS is indeed taxable and not bracketed.

[True_to_Run]

Great Video! You made this very easy to understand. Thanks!