Ask Larry

Taxation Of Benefits

Should My Wife And I File Separate Tax Returns To Avoid Paying Income Taxes On Her Benefits?

Greetings,

You indicate that a spouses benefit would not be reduced by the working spouses continued income. My wife has been retired for 3 years, she filed for her benefit at age 66. We were notified that she would received a reduced payment based on out Jint tax filing which was 100% my income. The reduction was in in the area of 20%.

Can you direct me to a way to understand? Perhaps expoloation of filing married but seperate?

Thank you for your time.

Best Always,
Mike

Hi Mike,

Posted: 
Monday, December 28, 2020 - 09:49

Do I Pay Social Security Tax on My Social Security Benefits?

Do I pay social security tax on my social security benefits once I start receiving them

Hi,

You wouldn't pay Social Security taxes on the benefits you receive, but you may be required to pay income taxes on part of that income. For more information, refer to the following Social Security website: https://www.ssa.gov/benefits/retirement/planner/taxes.html.

Best, Jerry

Posted: 
Sunday, June 21, 2020 - 17:05

How Much Can I Earn Before My Husband's Benefits Are Taxed?

My husband is receiving SSDI. When I return to work what is the maximum amount I can make yearly before his SSDI becomes taxed? Does it sway the figures in our favor if I contribute to a 401k? I do not understand why such a rule even exists. He has higher medical bills than most so it is impossible to live off just one income.

Hi,

Posted: 
Tuesday, February 25, 2020 - 12:41

What Federal Tax Rate Percentage Will I Have To Pay On My Benefits?

I am going to retire 66 and 2 months in May of 2021. I would like to know how much federal tax I will have to pay. I read an answer of yours already and know that based on total income that I will either have to pay taxes of either 50 to 85%. My question is at what federal tax rate percentage will I have to pay. 20% 25 %?? Does it depend in what state I live which is New York?

Hi,

Posted: 
Thursday, February 20, 2020 - 13:16

How Much Should I Have Deducted From My Benefits?

I will be 66 on May 5th and am scheduled to receive my first benefit check on June 12th .I work as a project manager for a government contractor. I am married, but my wife doesn't work. We have custody of our grandson who is seven. I make $83,200/year gross. So how much should I have deducted from my social security benefit to avoid having to pay next year?

Hi,

Posted: 
Tuesday, April 9, 2019 - 08:13
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