Taxation Of Benefits

Can You Explain How To Figure Taxes On My Social Security Benefits?

I received a lump sump from SS that included the prior year. I am working through publication 915 worksheet 2 for prior year refigured tax to see if the lump sum election saves me any taxes. Line 19 shows your refigured taxable benefits. Can you explain exactly what they are asking for on line 20 (enter your taxable benefits for the earlier year or refigured due to a previous lump sum for that year). Are they asking for the refigured amount on line 19, the total for that year from line 1, other taxable benefits that you already reported or maybe something else. Thanks.

How Much Income Can We Have Before Our Social Security & Medicare Benefits Are Reduced?

I am married and file my taxes jointly. We both collect SS as we are in our 70's. what is the max AGI I can have before our SS or Medicare benefits are reduced ? I supplement my income by cashing in IRA funds.
Thanks

Hi,

Your Social Security benefits and Medicare coverage won't be reduced no matter how much income you have. However, if your yearly income is high enough, you may have to pay income taxes on a portion of your Social Security benefits, and your premium rates for Parts B & D of Medicare may be increased.

Can My Wife Get Benefits If I'm Working?

My wife and I are 62. Can she retire and claim her benefits while I still work to full retirement age? Also, I am of the assumption that if she can, that income would be taxable if we file jointly?

Thanks, Chris

Hi Chris,

Yes, if your wife qualifies for benefits based on her own work record, she can receive benefits regardless of your work and earnings. Of course, if she files at age 62, she will be taking a reduced benefit amount.

Who Pays The Taxes?

I am 63 and have a 15 year old daughter. I understand she can get 1/2 of my max benefit until she graduates High School. I can still work but am wondering about taxes. Does she pay or do i pay on hers?

Hi,

Your daughter's benefits are considered as her income, not yours, so you won't be liable for paying taxes on them. And, unless she has a yearly income of more than $25,000 counting one-half of her SS benefits, she won't owe tax on them either.

Best, Jerry