The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Taxes on SS Benefits||Date: 4/9/2013 4:22 PM|
|Author: TMFPMarti||Number: 118341 of 120448|
1) Social Security benefits may be taxed if you have enough income from **any** other source be it job, pension,401K, 403b, Roth IRA, or whatever.
This one is close to true. Anywhere from none to 85% of your SS benefit goes into your gross income, depending on what other income you have. You can see the calculation in the worksheet for line 20 of the 1040.
2) Social Security benefits may be taxed if you have enough **earned** income; income from investments, retirement accounts, pensions, and so forth do not affect the taxation of Social Security benefits.
This one is false, but I suspect it's a twisting of another rule. If you're below Full Retirement Age and receiving SS benefits there's a limit to how much earned income you can have. If you exceed that amount your SS benefit is reduced. You can read about this at www.ssa.gov.
Rule Your Retirement Home Fool
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|