Social Security taxes on benefits
Hi Terry!
Long time listener to you on John Williams show. Writing you because I have your book, but loaned it to a friend (I’m sure the answer is in there!)
I followed your direction, I’ll be taking my Social Security payments at age 70, which begins in a few months. My question is I think these payments will be taxed, but how do I find out the taxing rate, and any other income thresholds there may be to impact the taxes? (Also, I’m still employed) Thanks in advance, Alex
PS: you tell John that 8% per year makes a huge difference!🙂
Terry Says
HaHa, John isn’t there yet — but he will figure it out. Talk with your tax preparer to figure out how much should be withheld from your SS check. Depending on how much other income you have, as much as 85% of your benefit could be taxable. And depending on your filing status (single, married, etc) the amount will vary. Probably, you’ll want to ask SS to withhold as much as 20% from each check — or work with your tax preparer to set up quarterly estimated tax payments.
