Tax on social security invome
This year I will start receiving social security income while I continue to work. Should I have taxes taken out or should I use that money to increase my 203B or put the money in a CD.
Terry Says
You should speak to your accountant right now to plan ahead. First determine whether your SS is going to be taxable —
If your combined income is above a certain limit (the IRS calls this limit the base amount), you will need to pay at least some tax. The limit remains unchanged in 2025 from 2025 – $25,000 if you are a single filer, head of household or qualifying widow or widower with a dependent child. The 2024 and 2025 limit for joint filers is $32,000. However, if you’re married and file separately, you’ll likely have to pay taxes on your Social Security income.
If your SS will be taxed, you should determine the amount and definitely have some taxes withheld. Or else you must set up quarterly estimated payments.
