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Tax implications of collecting Social Security?
What are the Federal tax implications if my spouse begins to collect Social Security benefits at 62 while I continue to work. We file jointly. The Social Security benefits would be my spouses only income. I am not yet old enough to be eligible to collect. All of our individual retirement savings would left alone until I retire.
5 Answers
- ninasgrammaLv 78 years agoFavorite Answer
If your joint income plus half of the SS is more than $44K, then 85% of the SS benefit is included in gross income on the tax return. You cannot avoid this by filing separate returns. With a separate return, 85% of her SS is automatically subject to tax.
- ?Lv 78 years ago
When you are under full retirement age and take SS benefits, your benefit is reduced by $1 for every $2 you earn over $14,640. If your combined incomes exceeds $32,000 you have to pay tax on all of it including the Social Security.
- irongramaLv 68 years ago
A portion of your wives social security would be taxable, not all of it. - take the AGI not including the social security and add 1/2 of the social security. For a married couple, every dollar of social security that goes over $32,000 is taxable but to a max, never all of it.
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