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Author: jeans98 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19378  
Subject: Take Social Security at Age 62 Date: 3/29/2000 10:12 PM
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The writer of the above subject article forgot to taken into consideration the tax consequences of taking social security at age 62. If taking the reduced monthly check puts one in a higher tax bracket and 85% of your social security check is taxed, why would one want to take the social security at age 62.

I would like to see this questions addressed?

Thanks
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Author: capdev Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3296 of 19378
Subject: Re: Take Social Security at Age 62 Date: 3/29/2000 10:31 PM
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I was considering taking an early ss pay out, but I never considered the tax consequences. If someone could explain, please do, I would be most greatful. Thanx, capdev

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Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3300 of 19378
Subject: Re: Take Social Security at Age 62 Date: 3/29/2000 11:15 PM
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<< I was considering taking an early ss pay out, but I never considered the tax consequences. If someone could explain, please do >>

Anywhere from none to 85% of your Social Security benefit is included in your income for income tax purposes. There is a worksheet on page 15 of the 1040 instructions that you can use to test different scenarios.

The worksheet is really easier than a verbal explanation, but here's a shot at the basic rule. If one-half of your Social Security beneifts plus all your other income is more than $25,000 for a single person or $32,000 for a joint return, some of your Social Security benefits will be subject to income tax.

TMF ExRO
Phil Marti

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