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Author: StockLover2 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: social security loss Date: 2/11/1999 6:54 PM
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Have a friend receiving social security payments. she wants to sell some stock, but doesn't know how this will effect her benefits.....do capital gains (if over the limit of earned income allowed) result in the loss of some or all of her benefits.?....does that also appy to ira dispersments?
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Author: JABoa Big gold star, 5000 posts Feste Award Nominee! Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 10015 of 121061
Subject: Re: social security loss Date: 2/11/1999 7:46 PM
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She will not lose any benefits. If her gain is large enough, however, some of her benefits may become taxable.

But if she is collecting SS and still working for wages, she may have an offset in SS if she is between 62 and 69. I am presuming this is not the case.

The threshold for taxability of SS for a single person is as follows. Take all non-SS income, even non-taxable income like municipal bond interest. Add half SS. If this exceeds $25,000, some SS will be taxable.

For details, first check out TMFTaxes's Tax FAQ's on this site. If this is not enough you can go to the IRS Web site, www.irs.ustreas.gov.

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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 10154 of 121061
Subject: Re: social security loss Date: 2/13/1999 7:01 PM
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[[Have a friend receiving social security payments. she wants to sell some stock,
but doesn't know how this will effect her benefits.]]


It won't. Not in the least.

Now, part of her social security benefits may become TAXABLE, depending upon her income. But her benefits, per se, will not be reduced or otherwise eliminated.

[[....do capital gains (if over the
limit of earned income allowed) result in the loss of some or all of her
benefits.?....does that also appy to ira dispersments?]]

Capital gains are NOT considered earned income...and therefore will not impact her benefits. But, as noted, the benefits may be taxable. Read more about taxable benefits in the Taxes FAQ area. Check it out.

TMF Taxes
Roy

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