Do You Have To Pay Tax On Your Social Security Benefits?

If you look at your most recent paycheck, you are going to see a guy by the name of “FICA” subtracting money from your take-home pay. Part of that FICA tax is sent to the Social Security system, which entitles you to receive Social Security payments when you retire. The unfortunate news is that, even though it was a tax that you paid while you were working, most retirees will have to pay some form of Income Tax on it. So, it’s a tax you pay on a tax? Pretty much!

In this video, I will be covering:

• The percent of your Social Security benefit that will be taxable
• The tax rate that you pay on your Social Security benefits
• The Social Security earned income penalty
• State income tax exceptions
• Withholding taxes from your Social Security payments

#socialsecurity #greenbushfinancial #retirementplanning

[sarawilliam]

Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.

[karlgilmore]

so in other words it's taxation without representation, taxing us on the money they already taxed us on.

[glennbrickle]

paying taxes twice on the same money is double taxation

[wtk]

As a rule, retirement shouldn't be treated as income because the person isn't working anymore. But we don't live in a sane world, do we? We live in a world ruled by useless people who have to steal our money because they aren't competent enough to earn their own legitimately. That's my working definition of "politician".

[summerland]

Watching this gave me the same feeling as when I came home from work one day to discover my living room ceiling had fallen in from an unknown roof leak that destroyed everything I worked so hard for. Then robbed by my government posing as an insurance agency.

[ronrice]

Thank you so much for this video. You answered a question I was wondering about.

[audrybella]

Very informative and helpful video. Clear and concise explanations. Thank you.

[sandraledoux]

I never paid taxes on my social security benefits.And I have been on it for years. I'm 72years old .

[Khawrlo]

Thanks so much Michael,
I came across this vid of yours when I was scrolling to watch vids. Guess, that's called
an algorithm? hehehehehe:)
I started receiving my SSA, Nov of 2021 and at the early retirement age.
This will be my 1st year filing under SSA rules and I am so glad I saw your vid.
OK that's all I wanted to tell you, Peace and Grace, Ok You Be Good! 💰

[SunnyIlha]

It was *ALREADY* taken out of the earnings over lifetime working!

[chrisb]

Outstanding information on SS benefits. Thanks.

[charlesmoore]

So what the government is doing is taxing you twice. Once when you are working the government takes out for Social Security and then when you receive Social Security then tax you again! What a great system for the government!

[wmgthilgen]

The first one which shows maried individuals are taxed after 32, 000 while being single one isn't taxed until 25, 000. Is the number one reason so many married retire's are getting divorced. But not actually separating.

There a reason it's referred to as the "Marriage Tax". A combine income of those who are leggally married is only 32, 000. While the income of two individual's who are not married, even though they live together is 50, 000. Doing the math, that's some 18, 000 difference. I know of several retiree's including my self who are divorced after scores of year's of being married, just to avoid the Marriage Tax.

[judithlavenski]

I'm not going to do that I'm going to still work until I can't anymore that's what I'm doing I know that if you take it early then you're not going to get anything after I know that study the guidelines and thank you very much hope you had a very happy holiday Happy Thanksgiving thank you for sharing your video

[bobwhite]

Great presentation. I can understand why you are a Managing Partner.

[michelelindseth]

My SS started low as l am a disabled single woman
with sporadic income when l was able to work
30 years ago. I was on SSDI at $941 until l turned 67 when that amount came from SSA instead of SSDI. The COLA adjustments have not even
kept up with the cost of living. How does the IRS
expect me to pay more to them?

[SPEAKEASYAZ]

Not necessarily. You have to do the work sheet.

[puravida]

Social Security recipients are getting screwed two ways. By the manulipation of annual COLAs for lower benefits. And, and antiquated Social Security tax table that has never been adjusted for inflation.

[johnscott]

For all the people complaining about double taxation: a little background. Social Security used to be tax free and other retirement accounts were not. Things like pensions and annuities. So, in order to level the playing field, so to speak, they introduced taxation of Social Security. Since your employer pays half of the FICA tax, they set the maximum amount that could be taxed at 50%. They set the thresholds for taxation very high for the time so that only a few rich people had to pay it. But they deliberately did not index the thresholds to inflation so that eventually everyone except the very poor would have to pay tax on their benefits. Ten years after this started, the chief actuary of the government calculated that the average retiree only paid in about 15% of their lifetime benefits so they could raise the maximum amount of benefits that could be taxed to 85% and still avoid double taxation. So, whether you agree with what they did or not, please realize that there was method in their madness. Hope this helps.

[scrituras]

They claw for sure what a shame it is that you work so hard and they claw and claw. But I thank you for taking the time. I wanted to find out what the tax rate would be for retirement in the state of nm you cant find any help from anyone and when you call the Internal Revenue too much bs waiting time for someone to answer..