social security taxes
My husband has received $21,000.00 in social security and I have received $17,500.00. In addition to that, I also receive a 12,000.00 pension plan. We also receive a combined total of $30,000.00 in interest from CD and treasury bonds. I am aware that we are over the $44,000.00 limit and I was wondering if our social security benefits will now be taxed at 85 percent. My husband is 65 and I am 66 years old. We are both retired.
Thank you for time!
Terry Says
For married couples filing jointly, you will pay taxes on up to 50% of your Social Security income if you have a combined income of $32,000 to $44,000. If you have a combined income of more than $44,000, you can expect to pay taxes on up to 85% of your Social Security benefits.
PS. I’m very sorry that you chose to take SS before your FULL retirement age. It cost you a lot of money in benefits. It’s even worse because you are still working. You are penalized $1 for every $2 in outside earnings — Or #1 for every $3 earned in the year in which you took it early but would have been eligible that year. This is a huge penalty. Check with a tax preparer this April.
