09-20-16, 08:52 AM #1Member
- Join Date
- Nov 2006
SS Benefits Taxes - Federal/State/Local
Been reading through all the Regulars posting on this forum since I am starting to think about retirement. I must say, there's a lot of wisdom and knowledge here. I've only seen the subject of taxes on SS Benefits discussed in generalities so I was hoping you might provide some information as to How SS Benefits are taxed? Like most of you, I contributed to both my company's matching pension plan and through a Regular IRA.
I know both the pension plan and IRA will be subject to Income Taxes as regular income since most contributions were pre-tax but I've never been sure How SS Benefits would be handled>
I see in one of the posts about SSA sending out Benefits Tax form to recipients and wondered how that form is broken down for income tax purposes.
Also, I'm going to heed your advice about getting the SS for Dummies book with all the recent regulation changes...
09-20-16, 08:57 AM #2Forum Topic Moderator
- Join Date
- Mar 2005
Generally only half of your SS income is taxable [for federal] until you reach a certain income level, then I believe it all becomes taxable. I've not reached that income level nor do we have state income tax so I don't know about that part of your question. You should be able to find all/most of what you want to know at the SS website.retired painter/contractor avid DIYer
09-24-16, 11:00 PM #3Member
- Join Date
- Jan 2011
I handle my moms social security tax and in Maryland we do have a state income tax. I can't speak for all states but in Maryland social security is not taxed. It definitely is at the federal level based on what you take in a year. With deductions for state taxes and medical expenses to name just a few deductions you can usually bring that tax amount down to zero unless as you do there is other income and perhaps some cashed in savings bonds. About anything is deductible within reason and I usually use Turbotax to do our taxes.
I am not endorsing Turbotax however and certain pitfalls can still happen with the software but it is a fairly good guide and you can pay someone extra on the staff of Turbotax who can help you further. Up to you I suggest reading the reviews of the various tax software out there on Amazon.com and see what other users think. it is also available online for free if you don't have complicated taxes, however if you do I strongly suggest the paid version.