Large Tax refund
Hello, I am retired at age 68. I have 10% taxes taken out of my Social Security. Giving me $2270 per month after deductions.
TurboTax calculated $3700 “taxable income” for 2024.
I have a federal refund of $ 3100.00 and MI State refund of $948.00
Should I have only 7% taken out of SS or nothing at all. ?
Thank You so much, I appreciate Your Program !
Renee
MI
Terry Says
You definitely need to withhold some amount — or you could face penalties unless you make quarterly estimates. It’s much easier to have the taxes deducted from your check.
You could lower the deduction to 7% — and see how it works out this year! Or treat the refund as a delightful “present” — although it is an interest-free loan to the government!
