Ask Terry Questions Taxes on social security after 70 if you’re working

Taxes on social security after 70 if you’re working

By Terry Savage on June 01, 2024 | Financial Planning / Retirement

My husband is still working. He will be 70 tomorrow and will get his 1st social security check in the middle of July. He makes around 80k from his job , and I (67) make around 45k. He will keep working until they make him quit (or offer him a package to get rid of him.) He’s in logistics for a large food company and can work from home so it’s easy to keep working. Will he be taxed on the social security income?
Should he have taxes taken out of his social security? Can he put the unused income into something to reduce the tax liability. We are losing at least one and possibly 2 dependants and the lifetime learning credit this year. I’m afraid we’ll get hit. We usually get a little back. He’s after me to quit my job. (Not happening, I teach 2nd graders.)
Thank you for reading this ramble (and I’ve cut things out.)
A loyal WGN listener.

Terry Says

Keep teaching those 2nd graders!  We need good teachers –priceless!  And nothing wrong with paying taxes; it means you’re both earning money.

Up to 85% of your social security benefits (if your total income is more than $25,000 for an individual or $32,000 for a married couple filing jointly), will be taxed at ordinary income rates, depending on your overall income level.

This is a good time to check with your accountant and do some planning.  He might want to have 20% withheld from his checks for taxes, or pay a quarterly estimate.  Your taxes are covered by withholding. But you need to look at the total picture if you’re filing a joint return.  And it’s wise to plan ahead!



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