Social Security

[GTOguy]

Originally Posted by LATB

I'm taking it next year at FRA. I waited because of taxable income would trigger taxation on the SS. And as I understand it, the SS will not be taxed after reaching FRA.

That's my understanding as well. If I were still working, I would not have taken it, as the penalty is 50% if you make over 20k per year.

[Bruze]

Originally Posted by 04 commemorative

Take SS as soon as you can,my mom waited till 70 to collect and after she received one(1) check she dropped dead
The government loves people like her !

The gov loves to SPEND money, not save it.

Even to the low-level, non-ideological grunts, the more people sucking off the system means job security for them.

And to the higher-ups, it's about building their fiefdoms.

[Yadkin]

Originally Posted by LATB

I'm taking it next year at FRA. I waited because of taxable income would trigger taxation on the SS. And as I understand it, the SS will not be taxed after reaching FRA.

I think that if you take it early, then you'll get a tax rebate for that amount paid at FRA.

[LATB]

Originally Posted by GTOguy

That's my understanding as well. If I were still working, I would not have taken it, as the penalty is 50% if you make over 20k per year.

Anyone not making over 20K per year is going to need to share a domicile with a sugar mama and racoons.

[Big bob]

Originally Posted by Yadkin

Wait for him to show pictures of cats.

What the **** are you babbling about now?

[DAB]

i can assure you, your SS check will be taxed if you have any other decent income, including dividends and cap gains. your FRA has nothing to do with it.

[Big bob]

Originally Posted by DAB

i can assure you, your SS check will be taxed if you have any other decent income, including dividends and cap gains. your FRA has nothing to do with it.

If your married you can sell a home every two years and tax free 500k every time.

[LATB]

Originally Posted by DAB

i can assure you, your SS check will be taxed if you have any other decent income, including dividends and cap gains. your FRA has nothing to do with it.

I believe you.
A quick search looks like only those with income under 25K (single) 35K (married/jointly) will not pay tax on their SS.

[GTOguy]

Originally Posted by LATB

I believe you.
A quick search looks like only those with income under 25K (single) 35K (married/jointly) will not pay tax on their SS.

IIRC, it varies state to state. In CA, it is not taxed. In some states, over age 65, it is not taxed. Some states it is.

[DAB]

Originally Posted by GTOguy

IIRC, it varies state to state. In CA, it is not taxed. In some states, over age 65, it is not taxed. Some states it is.

the feds will always get their share. 85% of mine was taxable.

[Big bob]

Originally Posted by DAB

the feds will always get their share. 85% of mine was taxable.

Did you know any homes that you own were revalued for capital gains when you lost your wife depending on where you live?

[Mick]

There is some seriously BAD financial advice in this thread.

I could try to explain all of the wrong shit here regarding taxation of SS payments, but it would be better for anyone thinking about when to take their benefit to go to ssa.gov. There is a FAQ section that will cover all of the ****ed up things above.

[Bruze]

Originally Posted by Mick

There is some seriously BAD financial advice in this thread.

I could try to explain all of the wrong shit here regarding taxation of SS payments, but it would be better for anyone thinking about when to take their benefit to go to ssa.gov. There is a FAQ section that will cover all of the ****ed up things above.

Ha, yes it's complicated. I took SS in 2013 at age 63, my FRA was in 2016 but I kept working til 2021.

My tax babe explained several times what was going on with SS and how it was taxed, because it would change as I aged, but it never sunk in. I didn't even try to memorize it.

[Mick]

Originally Posted by Bruze

Ha, yes it's complicated. I took SS in 2013 at age 63, my FRA was in 2016 but I kept working til 2021.

My tax babe explained several times what was going on with SS and how it was taxed, because it would change as I aged, but it never sunk in. I didn't even try to memorize it.

I used to try to help people with their SS decisions, but stopped for two reasons:

1. The SSA has simplified the program significantly over the last decade or so.
2. The SSA has (believe it or not) improved their FAQ section so much that I can't write a more clear explanation off the top of my head than they have out there for public view.

The one thing that I will say is that all of the discussion above about "state dependent taxation" of SS benefits applies ONLY to taxation by the state you live in. Whether your SS benefit is taxed at the Federal level is completely independent of where in the US you live.

[Taurus]

Originally Posted by LATB

I believe you.
A quick search looks like only those with income under 25K (single) 35K (married/jointly) will not pay tax on their SS.

Remember, only 50% of your SS income is taxable so in my case I can take approx. $25,000 in pre tax dollars along with my SS and not pay taxes.

[Yadkin]

Well, my financial advisor was useless here. I asked him when the best age to start collecting, assuming that the system screws me in 2033 and cuts my benefit by 25%. He couldn't come up with an answer. All he can do is plug numbers into an online calculator.

Before I spend the time making a spreadsheet to answer this question myself, is there anyone here who has already made such a spreadsheet? Or has a link where I can download a template?

[KenHorse]

Originally Posted by LATB

I'm taking it next year at FRA. I waited because of taxable income would trigger taxation on the SS. And as I understand it, the SS will not be taxed after reaching FRA.

What does the Federal Railroad Administration have to do with it?

[Yadkin]

Full Retirement Age.

[KenHorse]

Originally Posted by Yadkin

Full Retirement Age.

:sarcasm:

[Big bob]

Originally Posted by Yadkin

Well, my financial advisor was useless here. I asked him when the best age to start collecting, assuming that the system screws me in 2033 and cuts my benefit by 25%. He couldn't come up with an answer. All he can do is plug numbers into an online calculator.

Before I spend the time making a spreadsheet to answer this question myself, is there anyone here who has already made such a spreadsheet? Or has a link where I can download a template?