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Peyosh |
SS Tax Question |
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I received my SS statement yesterday. I filled out the lines to see if I will owe any tax on my SS. The paper said you have to pay taxes if you go over $25,000. My total is $25,854. My question is this...do I have to pay tax just on the overage amount of $854 or do I have to pay tax on the whole $25,854?
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MSgtMack |
Re: SS Tax Question | #1 | ||
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Peyosh,
Does the $25,854, include 1/2 of your social security? The way this works is you take half of your Soc. Sec. and put it in the "Income" pot. Then you start adding any other taxable income you may have, interest, dividends, military retirement/CRDP. If you are single, when the total, of the income pot reaches $25,000.00 then your Soc Sec starts to be taxable. After your personal exemption and standard deduction are subtracted from your gross income, you will be taxed on what is left a income. This is true whether your Soc Sec is taxed or not. If you over the $25,000.00, then a portion of your Soc Sec is also taxed. If you are over the limit by $854.00 then $854.00 of your Soc Sec will be taxed as income. You will not be taxed on the entire 50% of your Soe Sec, unless you make enough money to warrant it. Mack |
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SkipCooL42 |
Re: SS Tax Question | #2 | ||
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Peyosh,
Assuming you are filing a Form 1040A federal tax form. Go to Link 2005 1040A Instruction Book, on page 29 and fill out the Social Security Benefits WorksheetLines 14a and 14b. Is in .pdf format so you can print it. It will show you exactly if you owe any federal tax on your Social Security or not. Be sure to fill out lines 7 through 13 (if any of them apply to you) of Form 1040A BEFORE doing the computations on the Social Security Benefits Worksheet. You will need the total of some of these amounts to do the worksheet. Skip: |
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Peyosh |
Re: SS Tax Question | #3 | ||
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Mack...$25,854 DOES include 1/2 of my SS, PLUS my police pension. I dont have any interest, dividends.
Thanks Skip. |
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MSgtMack |
Re: SS Tax Question | #4 | ||
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Is this before or after you take your exemptions and deductions (on the back of the 1040, or the Adjusted Gross Income at the bottom of the first page of the 1040?)
Are you married? How many dependents? Mack |
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Peyosh |
Re: SS Tax Question | #5 | ||
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Mack..the total of $25,854 is BEFORE any 'ducts. I'm waiting on another 1099 before I get into filing.
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MSgtMack |
Re: SS Tax Question | #6 | ||
Quote: Mack |
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Peyosh |
Re: SS Tax Question | #7 | ||
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Mack...not married. My kids are all grown. I'm 61.
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