Filing Taxes in 2023? Here's How Your Social Security Will Be Taxed

A lot of rumors swirling around Social Security. More specifically, how Social Security is taxed. You were already taxed with FICA taxes to earn Social Security, and now it can be taxed again?
The answer is yes, up to 85% of your Social Security income may be taxable. We'll walk you through how it all works.
Watch the updated video here:
• Here's How Much Will Y...
Download the Worksheet Used in the Video:
theretirementnerds.com/social...
If you would like the financial advisors here to go through your situation with the spreadsheet, always at no cost, you can connect with us at theretirementnerds.com/ or send me an email to [e-mail]
Need help? Email me!
[e-mail]
Visit our website: www.TheRetirementNerds.com
Federal Disclaimer:
We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all your options.
Chapters:
0:00 Introduction
0:49 How Much Is Taxable?
2:23 Calculating Your Taxes
3:26 2 Calculations
3:42 Calculation #1
4:39 Calculation #2
5:28 Scenario 1 : 0% Taxable
6:38 Scenario 2 : 16% Taxable
8:41 Scenario 3 : 85% Taxable
10:49 Recap

[@Theretirementnerds]

The Worksheet Used in the Video: This worksheet was created by the team of financial advisor who are partners with 90 Days From Retirement. Due to the regulations the advisors must adhere to, the SEC does not allow us to distribute this spreadsheet in any way. We cannot sell it. We cannot send it. If you would like the financial advisors here to go through your situation with the spreadsheet, always at no cost, you can connect with us at 90DaysFromRetirement.com or send me an email to [e-mail]

[@RossMalagarie]

I live in Louisiana is SS taxed before you get it every month or do you have to pay your taxes on SS when you pay your taxes. I am a full time professional firefighter and I have a state firemen's retirement. But I also have Social Security. You are saying "taxable" is federal income tax and/or state income tax? Is my SS taxed for federal income tax and/or state income tax?

[@12397bmw]

I’m trying to understand this but I have to make sure I’m right, my ssdi is 2101 each month as of next month meaning my yearly income would be 25,212 then I divide it in half making it 12,606 since it’s below 25,000 and I’m single and have no other source of income I don’t have to pay taxes?

[@user-jc7jb3bu5s]

CLICKBAIT!

[@lydialee5444]

Yes definitely a like ! You explained and illustrated it the best . Very clear and easy Toni derstand for us senior. I subscribed and definitely share your channel to friends. Thanks!

[@Theretirementnerds]

Thank you so much Lydia!

[@Stilllookingood58]

Thanks for this Erik. I will keep this video for reference.

[@jodiecox4353]

Wow!!!! Such great information on a very confusing subject. Thank you for all the examples!

[@Theretirementnerds]

Thank you Jodie!

[@culu4877]

FINALLY somebody out there who knows what he's talking about !! l couldn't find anyone who could explain how these thresholds REALLY work. People out there listen to this guy. He totally deserves his “Like”.

[@Theretirementnerds]

Appreciate this so much! Working on the 2024 version to release early 2024 :)

[@masterlee4370]

I always hit the like button before I even watch the video. Why you ask? Because I already know its going to be that good. And since my plans are to start collecting January 2024 I can't wait for the videos coming. Great Job!

[@Theretirementnerds]

Thank you!

[@sandramoye-cochran5412]

Thank u so much. This was really helpful. I did the worksheet to see how much of social security was taxable but I did not understand all of the calculating until now. U explained it to where I could understand it. Thanks

[@Theretirementnerds]

So glad it was helpful! Thank you for watching!

[@terryadams1830]

Very concise (and correct). Well done. Thanks!

[@Theretirementnerds]

Thank you Terry!

[@carywinn3391]

Straight-forward presentation. No "tax torpedo" scare tactics. Well done. Even in a worst-case scenario, one still pays 15% less on SS income than other taxable income.

[@aileencapra1452]

Thank You. Very informative and best video on you tube regarding SS tax. Just subscribed.

[@Theretirementnerds]

Appreciate that so much!

[@jhors7777]

Excellent video, thanks so much for posting this.

[@Theretirementnerds]

Thank you so much!

[@EustisRider]

I'm 67 and just started taking my SS last April. My wife is 61 and still working. This was super helpful and removed so much of the mystery around this topic. Thank you! Well done.

[@Theretirementnerds]

Thank you! We have an update releasing possibly today that we think is even better and... we are making the spreadsheet available to download so you can play with your own numbers. Stay tuned!

[@citizenplanetearth6450]

This was the most informative video I’ve watched to date and very helpful! Well done and thank you!

[@Theretirementnerds]

So glad it was helpful! We think this update is even better AND you can download the spreadsheet we us in the description of the other one 🙂 kzbin.info/www/bejne/Y5rJp2mPa9Kcnc0

[@Abee2403]

Very good explanation on how to calculate tax on SS benefits with examples (I rarely use too many adjectives; but you deserve it).

[@Theretirementnerds]

Thank you so much!

[@peterizzo6527]

Awesome explanation, thank you! I've listened to several financial types explaining this and your explanation is head and shoulders above the others.

[@Theretirementnerds]

Thank you so much, Peter! We are releasing an update on Sunday and a deep dive around the Tax Torpedo associated with these SS implications a couple of days later. Stay tuned!

[@TraceElements-ti5ke]

Very good information. I will need some time to produce these formulas but now your video give me a good base. Much Thanks!

[@Theretirementnerds]

Thank you for watching!

[@dannycai386]

Thank you! You answered all questions i had in the last 3 years regarding SS.

[@Theretirementnerds]

So glad it was helpful! Thank you for watching!

[@randolphh8005]

Best video I’ve ever seen on this! Great job

[@Theretirementnerds]

Wow, thank you!

[@tomm7505]

You earned my "Like". Great video and it cleared up some questions I have about SS benefits. (My spouse and I are starting to receive SS benefits in 2023 and I know that some portion of our SS benefits will be taxable on our return next year.). Thanks again!!!

[@Theretirementnerds]

Thank you so much Tom!

[@tomm7505]

@@Theretirementnerds I subscribed to your channel as well. I learned a lot about Medicare Supplement plans from your other videos. That'll be next year when I turn 65. Thanks again!

[@tinalippincott9823]

Thank you! Excellent, concise, informative and understandable.

[@Theretirementnerds]

Thank you Tina!

[@et_phonehome_2822]

@@Theretirementnerds Best video with examples unlike others just rambling on still leaving me in the dark. I am more of a visual person with examples in understanding.

[@Theretirementnerds]

@@et_phonehome_2822 so glad it was helpful!

[@gk_filer]

After several years of trying to understand the formula finally ,,Thanks

[@Theretirementnerds]

Thank you for watching! Check out the update where you can download the spreadsheet! kzbin.info/www/bejne/Y5rJp2mPa9Kcnc0 Also, we go into depth on how to use the spreadsheet in your planning here: kzbin.info/www/bejne/kJbXk3maetacaKM

[@OShackHennessy]

This was a great presentation thank you

[@Theretirementnerds]

Thank you so much!

[@Highflite20]

Excellent video! Liked and subscribed!

[@Theretirementnerds]

Thank you so much Terry!

[@coastalhillbilly3419]

Cool, thanks, I projected much more in taxes for scenario #3 range but when the time comes will try to take less to pay an even lower percentage of taxes

[@stevec2940]

Outstanding, simple explanation. Thank you so much!

[@Theretirementnerds]

Thank you so much for watching! An updated, more polished version is coming this weekend 🙂 stay tuned!

[@rosadeidamia11]

You were very clear . Thank you very much

[@Theretirementnerds]

Thank you for watching!

[@johndoe1765]

Thank You this video has helped very much I'll be emailing you for future information.

[@Theretirementnerds]

Thank you so much!

[@hsvjackie2734]

Thank you. Yours is one of the very few rational and arithmetically correct explanations of SS taxation. Others try to be cute and mysterious.

[@Theretirementnerds]

Thank you so much for watching and the super nice comment!

[@neninocencio9325]

Thank you so much of your very informative video about filing income taxes if we receive a social security pension.

[@Theretirementnerds]

Thank you!

[@DoubleOld7]

Great resource. Txs!

[@Theretirementnerds]

Thank you so much!

[@Scalp269]

Awesome video!!!! Great information !!!

[@Theretirementnerds]

Thank you so much!

[@mainerdmoose9242]

Loved this! Just retired from teaching math and personal finance to seniors (i.e. 12th graders). Have done my own taxes for 40+ years.

[@Theretirementnerds]

That is amazing! Wish I had learned more about those in high school. That's a great service you've provided! We have an updated version releasing this weekend, as well as a deep dive into the tax torpedo associated with SS taxability, so stay tuned!

[@oliverw3646]

Very well explained. Thank you

[@Theretirementnerds]

Thank you!

[@jeffsaraiva7099]

You earned my "like" Erik! Great video! Now the state of Utah does tax SS Benefits and Pensions, etc., I was just wondering if that tax is more straight forward or if that, too, can be tricky to figure out. Cheers

[@Theretirementnerds]

Thank you Jeff! They don't make it easy... do they? That can be tricky as well. You would be using your Adjusted Gross Income from the Federal numbers we went through in this video. So it is the same calculation we used in the video to get the AGI, and then than number is put into the State figures/calculations/adjustments.

[@BartonWagstaff]

Best video on this topic I've ever seen!

[@Theretirementnerds]

Thank you Bart!

[@apkn1955]

This was the best explanation I have heard.

[@Theretirementnerds]

Thank you so much! So glad it was helpful!

[@macklyn]

Great information, thanks!

[@Theretirementnerds]

Thank you so much for watching!

[@worldchanges10]

I'm three years away from receiving Medicare, and will ask you advice on this coverage issues. Your explanation is to the point

[@Theretirementnerds]

Thank you so much! We will be here and happy to help in any way we can!

[@robertjeffery6100]

This is a great video, thank you

[@Theretirementnerds]

Thabk you Robert!

[@kristiG5259]

Great explanation and spreadsheet. I'll be working on reducing my AGI!

[@Theretirementnerds]

Thank you so much! Working on the 2024 version for 2023 taxes :) Very similar, just a different standard deduction.

[@meciesimmons9567]

Thank you! I learned a lot. As I prepare to retire in early 2024 - this was really helpful for planning!

[@Theretirementnerds]

Thank you for watching!

[@cherylbroadenax1006]

Congrats on your early retirement.

[@cherylbroadenax1006]

I am applying august 2023 and it should kick in feb 2024.

[@mikep490]

@@cherylbroadenax1006 Excellent to hear. You might talk with an expert (I did but they weren't clear) to find the best month to retire. As it was, between a pay boost my final month and payoff, my final paycheck was 25% higher, which went into the next year's taxes. I retired at the end of 2018. More taxes on that final pay in 2019, offset by the pay boost and increased pension. Attending our "are you retiring" classes, I expected $5K payout, but found I was eligible for over $1800 a month after retiring.

[@tinasyoga]

So helpful.. my part time hobby is learning how to prepare to retire.. I am looking at the lot of roth converstions, at least 50% taxes now or later.... plus if I die.. so easy for my beneficary and no taxes or probate.. win win.. just got to use good planning in the conversation.. I have a Transfer Payout of a annunity I am rolling into a roth over 9 years.. seems to be a good plan and planning on a second conversion around 64 when i will have no reportable income and will be using cash savings.. I 'd love you to discuss roth conversions.. etc.. :) thank you, best talk on figuring out the ss taxes so far..

[@Theretirementnerds]

Thank you so much Tina! We most definitely will do a video on that!

[@loisfreiner6127]

So informative and soo kind❤

[@sfar1778]

Thank you

[@veronicak2759]

Thank you for this clear explanation. I had to go over it a bit to understand but I got it in the end. I just filed for retirement at 65 but will be working part time. I am simply stunned by the difficulty in contacting Social Security, long wait times, not to mention I have been given wrong information by their employees a few times now. and feel like I'm just getting the runaround. Its pitiful. No one that works there seems to understand about the 1st year rule. I need to change a report in my income to them since I'm going part time now and wages will be less for the remaining months of this year. They told me they arent going to pay me SS benefits for 3 months because I'm making too much, but now I won't be so I have to file an appeal? Seems so stupid that you just can't even get someone on the phone and explain it in simple terms to fix it.

[@Theretirementnerds]

It is very complicated and SS responsibility is not to help you get the most out of your benefits. It is simply to help you sign up for them. So sorry it has been a frustrating process!

[@joltjolt5060]

Go in person

[@AksamitMotorsports]

Like the others said, straight forward explanation, Thank you

[@Theretirementnerds]

Thank you! There's an updated version where you can download the spreadsheet here: kzbin.info/www/bejne/Y5rJp2mPa9Kcnc0

[@anneoconnor9765]

Supper helpful. Thanks for sharing.

[@anneoconnor9765]

Oops. Super!

[@Theretirementnerds]

Thank you Anne!

[@sueanaphotography8822]

excellent job!!!!

[@Theretirementnerds]

Thank you!

[@josephroberto4959]

Thank you this was very helpful as I am retired and I’m only collecting all my pension next year. I should be collecting my Social Security and this gives me some sort of an idea of how much I’m going to pay. It took a lot of my anxiety away being on what they call a 🌹fixed income.🌹 which I’m learning what this word means it’s kind of rough if you know what I’m talking about. I am going to hit the subscribe button so I can get some more information. Thank you for your help and maybe I’ll talk to you soon.🌹😇💝🤣🌹

[@Theretirementnerds]

Thank you for watching and subscribing! Happy to help in any way we can

[@telasims233]

Very helpful, yep some went over my head because I had ONE question, single retired, most sites waste you time with single, retired, and one job?? RETIRED TO ME IS NOT WORKING!! so I kept looking.. you actually are very professional, you answered my question plus other information I may use in the future.. I love how you've not peddling sponsors and fluff, nothing but useful information..

[@Theretirementnerds]

Thank you so much! So glad it is helpful! This is an updated version of this video and in the description, it has the spreadsheet you can download yourself to play with the numbers :) kzbin.info/www/bejne/Y5rJp2mPa9Kcnc0

[@telasims233]

@@Theretirementnerds thanks so much👍

[@AB-wx8go]

Best video on KZbin that explains clearly how socials security and other income is taxed in retirement. Is your calculator available for download?

[@Theretirementnerds]

Thank you so much! That version isn't available for download because of some other things in it that our Financial Advisor partners aren't allowed to share due to SEC rules. We are updating it for 2024 and working on a version that would be available to download. You're always welcome to speak with the advisors at no cost around this as well if you want. Appreciate you!

[@chelseafn104]

This was very helpful. Thank you very much. I would really like to have you do my Taxes.

[@Theretirementnerds]

I'm so glad it was helpful! We are not accountants, so actually doing your taxes isn't our wheelhouse, but the financial advisor team often conducts tax return audits to help people with their financial plan!

[@ampiciline]

well explained !

[@Theretirementnerds]

Thank you!

[@jwcolby54]

I was able to more or less recreate the calculator using a standard spreadsheet for my specific situation. Very cool stuff feeding in agi and watching the taxable pct change. For me... the threshold where it turns into a simple 85% taxable is around 26K AGI "extra" earned income.

[@Theretirementnerds]

So glad it was helpful! Working on the 2024 update 🙂

[@teams3345]

Thanks for the info. I know 85% of my SS will be taxable. I am just trying to remain below the IRMMA amounts to make sure I do not have to pay extra Medicare Part B payments. This year is my 2 year look back date.

[@Theretirementnerds]

Smart to be thinking ahead. Many people don't and end up getting unpleasant surprises.

[@harveyh3696]

I have a headache. Will watch again later.

[@wthompson006]

FINALLY! A clear explanation of this topic. There are so many websites and videos that lead people to believe single individuals with more than $25000 in SS income alone will have taxable income. No, you have to look at half the SS income. There are also many leading people to believe the full income of individuals receiving more than $25000 in SS is taxable rather than the accurate 50% of the SS income over $25000. The taxable income is half of the amount that is over the $25000 limit. You have to subtract the $25K from 1/2 the total SS income and then cut that difference in half (difference X 0.5) to get to the taxable amount.

[@Theretirementnerds]

Thank you for watching!

[@jimringomartin]

Thank you so much for this. But I still need to know how my 1040 line 6 6a should be entered

[@jefferydevens386]

Excellent work on presenting this information. A teacher's heart! Much appreciated. Is there a way to purchase or find a way to have access to the program that made this?

[@Theretirementnerds]

Thank you Jeffery! That spreadsheet is a small portion of the overall picture our advisor partners use to help clients. They aren't allowed to commercially distribute that. However, if you have Social Security questions or would like them to help out, more than happy to introduce you to them through email. [e-mail] is my email address if you'd like to connect. Thank you!

[@joehollisremax]

Good job

[@Theretirementnerds]

Thank you! We are releasing an updated version hopefully today that has the downloadable spreadsheet :) Stay tuned!

[@TigerUppercut.00]

Wow.. it is clear as mud..

[@robskully3539]

Great explanation 👍🏻 Earned a like and a subscribe ! I have been using Turbo Tax for 20 years now. My taxes are pretty simple. I already know if I keep working my SS will be in the 85% bracket but it was nice to see how it is figured out. My Wife has been on SSDI for a few years now and still only 62 but I will be 70 next year and plan on taking SS then but still work. My taxable is 80k and I get 5100 from a taxable pension. My Wife gets 20k and I will get 52k from SS at 70 years old. How about taking a crack at those numbers ;-)

[@Theretirementnerds]

Thank you for watching and subscribing! Glad we could help! In regards to your numbers, I'm traveling without my computer today, but I'll put those in when I get back to a computer. Feel free to shoot me an email to [e-mail] with any other questions 🙂 Saw your comment on another video as well that I'll respond to over there. Thank you!

[@mikep490]

As a suggestion, maybe check with "My Social Security" to see your predicted SS benefit? I used 2018 TurboTax (computer version) and pre-estimated my 2019 tax, for after retirement. It was reasonably accurate. The conversion from SSDI to SSI, or whether it's better to receive half-bennefit of a spouse, is complicated and over my head.

[@robskully3539]

@@mikep490 I read that my Wife would only get 1/2 of what I would have got at my full retirement age. So by the time she hits her full retirement age she will be way above that because of all the COLA’s she has/will get.

[@leonardpereira7031]

Your explanations are terrific - Thank you. I'm going to keep this video

[@Theretirementnerds]

Thank you so much! Makes us happy that it's helpful ☺️

[@leonardpereira7031]

Hey, do you know how they calculate the 10% penalty for Part B; if you don't sign up. I know of people approaching 70, that have never signed up for Part B. They just didn't understand Medicare

[@Theretirementnerds]

@leonardpereira7031 10% per year they did not sign up for Medicare AND were not covered by a group plan - think a plan through their work. If they are working and covered by a company plan past 65, they are fine (including spouses). If they aren't covered by anything, and eligible for Part B but don't take it, that's where the penalty comes in.

[@leonardpereira7031]

@@Theretirementnerds How is the 10% calculated? In other words as an example: Is it $174.70 X 12 = 2,096.40 $2096.40 x .1 = 209.64 added to 174.70 per year Or is it 174.70 x .1 = 17.40 per year added to the Part B premium. That's my confusion

[@Theretirementnerds]

@leonardpereira7031 it's to the monthly amount. So your second example of $174.90 * 10% 🙂

[@irahartoch1075]

You did a great job of explaining this in simple, easy-to-understand terms. One small "technical" correction: Even though you refer to your "bucket 1" as "AGI" it technically is not AGI because AGI INCLUDES the taxable amount of the social security benefit. Bucket 1 is actually what AGI is NOT INCLUDING the line for Social Security income. As I said, you did it exactly correct, but referring to Bucket 1 simply as AGI can be confusing. If you want to refer to it as AGI (to be concise) you should explain this up front when defining the buckets.

[@Theretirementnerds]

Thank you for watching and the great feedback! We're working on 2024 so this is good to put in there. Thank you!

[@davidfolts5893]

I expect that Social Security becomes 100% taxable in future tax reform legislation for high-income individuals. My other prediction is this happens a month before when it can no longer pay full benefits, similar to what occurred in 1983 when it was last changed. Thank you for another outstanding video!

[@Theretirementnerds]

Thank you David! It'll ne interesting to see how this evolves

[@SandfordSmythe]

The % are set to avoid double taxation. Employer contributions and interest come out to about 85% of the check.

[@jamesrobertson504]

I would add a prediction that Medicare IRMAA premiums for high income seniors are probably going to go way up to address Medicare's funding shortfall, where the Trust fund is scheduled to run out only a few years from now. I'm fortunate enough to be able to hold off on filing for Social Security, but I was kind of shocked by the IRMAA premium payments I have to make monthly in cash, as a single person, when I was required by law last year to file for Medicare. Talk about "bracket creep", those IRMAA premiums for Parts B & D go up fast for single people with what seem to me like relatively small changes in income.

[@davidfolts5893]

@@jamesrobertson504 Great point, incentivizing many people to complete Roth conversions.

[@richardt1792]

It does seem that is how social security works. When things get desperate, raise the taxes on the recipients. Those that saved for retirement fund those who didn't. Those of us that saved, most likely sacrificed over the years to save, skipped vacations, drove old beat up cars, ate at home rather than 5 star restaurants. Our reward for that scrimping and saving is that we get to fund those that didn't. I remember reading a book in 1st grade, "The Little Red Hen."

[@jamesbarry6775]

Hi Eric, After watching your great video, I have some simple questions for you. As a single senior whose only income is Social Security, I undersrand that I will not owe any taxes. BUT, do I still need to actually file a tax return? AND, if I do, (as It's not possible to e-file one that shows $0.00 income), do I need to physically mail my returns to the Federal and New York State Tax Offices? OR, is retaining, for my records, a copy of my FreeTaxUSA 2022 Federal & State Tax Returns sufficiant? I'd like to thank you for making and posting your informative video and for taking the time to read and hopefully reply to this question. Sincerely, J. B. Rochester, NY. ⭐⭐⭐⭐⭐

[@Theretirementnerds]

Hi James, thanks for your email and comment. We'll put the answer here as well in case others see this question on KZbin. There are two things to consider: 1. The law 2. The practical If someone makes less than the standard deduction, they do not need to file a tax return. However, from a practical standpoint, many benefits or programs require tax returns from prior years as proof of income. So, even if someone makes less than the standard deduction, our advisors will often recommend filing the tax return. Great question!

[@ddub22]

I actually followed!

[@Theretirementnerds]

Thank you so much Debra!

[@davidbalch3216]

Explain Well

[@Theretirementnerds]

Thank you!

[@tirsocruz24]

Thanks a lot for your great info. Do I have to file taxes if my gross only income from my pension was below $10,000.? I really appreciate your kind reply and God bless.

[@Theretirementnerds]

Hi Tirso. Everyone has to file taxes each year, even if you don't owe taxes or taxes are owed back to you. Thank you for watching!

[@Elephantine999]

Good explanation of an overly complicated subject!

[@Theretirementnerds]

Thank you so much!

[@lbspin]

Great video. Awesome spreadsheet. Where did you get that? How can I get a copy? Thanks.

[@Theretirementnerds]

Thank you! Our financial advisor team built it. Based on the rules they have to follow from the SEC, they aren't able to distribute that, but if you want to go through your situation with them I can make an introduction. [e-mail] is my email.

[@lklen7108]

As always, you give very nice and clear illustrations. However, I have one question, why is the 2nd TH excess multiplied by only 35%? Isn't it supposed to be 85%?

[@Theretirementnerds]

Thank you for watching! The 2nd TH by the IRS definition is 35% based on the income level. The 2nd calculation is the 85%, not the 2nd threshold. All depends on the AGI which will determine which calculation it'll all fall into.

[@mikep490]

It's Congress (IRS) logic. The dollars over the 2nd threshhold is already taxed at 50%, thus 35% for $ over the second. It's a lower tax rate that way. An example, single filer so $25K and $34K threshholds. You got $34,300 in SS (SS income plus Medicare Part B). $9,300 (amount over $25K) would be taxed ($4650 as income) plus $300 at 35% (roughly $100 taxable). In my case, I had roughly $50K income, $26K of that from SS. Taxable amount from SS was $8,300. Total taxable from was now $33.9K, not $50K. After standard deduction, taxed at $19K. Basically, no matter your total income, if you received $34,300 SS, the taxable portion is around $4740 if your income exceeds the 2nd threshhold, as I understand the rules.

[@phonexayphetdara6709]

Very good job and Thank you! As I am still learning how to file my own tax. I am retired, but my wife is still working earning as normal and we always filled joint as well 2023 tax. How do I do that? Thanks again,

[@Theretirementnerds]

Thank you for watching! Check out the updated version! It has the spreadsheet available to download in the description of that video, and you can play with your own numbers. kzbin.info/www/bejne/Y5rJp2mPa9Kcnc0

[@arthurshingler2025]

Good video

[@Theretirementnerds]

Thank you Arthur!

[@charlesmullen3539]

IRS has a worksheet to figure your taxable social security benefits. My social security is taxable at 85% because I also receive a civil service benefit that I wokrd my butt off and paid into both social security and civil service. So on the tax table my taxable goes to a higher bracket. I have no dependents, no IRS, investments, zero, a widow, so the COLA does not benefit but increases my social security benefits and of course, my medicare premiums go up.

[@Theretirementnerds]

Excellent points. We added that worksheet to the description. Thank you!

[@rumin8470]

Very good thank you. I think Roth withdrawals would be tax free income and I think would be more common than municipal bond income as an example of non taxable income in retirement. I thought the distinction of percent taxable vs tax rate was not necessary to cover as much as you did, but presumably you have seen people confused by this.

[@Theretirementnerds]

Thank you for watching. Yes, we get the taxable vs taxed all the time. A lot of confusion out there. Roth withdrawals are a bit different. That box should have non taxable interest but we took interest out for space. Appreciate you!

[@user-vy6yz9ly7w]

​@@Theretirementnerdsw

[@Capt737AA]

Can I ask where I can find that particular calculation for the taxes? Is there an app or a link to it please!! Thanks!!!!

[@Theretirementnerds]

Hi Patrick, that is a spreadsheet our financial advisors built as they consult with clients. I can connect with them and get their thoughts on making that publicly sharable. Thank you for watching!

[@hildebertocarreiro9232]

Time to get petition

[@FLOODOFSINS]

I'm new to your channel. I'm not a big fan of the long channel name, but that's a side topic for another day. You did a great job on the video. There's a lot more to say but not enough room.

[@Theretirementnerds]

Appreciate you watching! Thank you!

[@GloriaWadzinski]

Confused by the language in so many different explanations of this. Some articles say "filing single" and some just say "single." I'm retired but my husband is not. If I'm married but filing individually, would I use the single thresholds?

[@tirsocruz24]

I want to know how much is the exempted total income who will not file taxes anymore. Thanks.

[@RebelsBestFriend]

When my hubby was working he filed our tax status as EXEMPT, so no taxes were taken out of his paycheck, as we've done for many years. I always put the money aside each month for going to those taxes due April 15th. A lot of people don't have the discipline to do that and would end up spending it. At least for the whole year WE have our money in a savings account earning minimal interest but at least the IRS isn't making any interest on our money. The IRS usually deducts more so many people get money back. I would rather they not have my money until it's due. Absolutely legal and as long as the IRS gets the taxes when it's due on the 15th, they don't care. Don't ever put 0 dependents because they'll withhold the max all year.

[@denniss3980]

Where can I get that provisional income calculator?

[@jeffshadrick3550]

Excellent work on your scenarios spreadsheet? How can I get a copy this spreadsheet to facilitate my own scenarios? Can I purchase?

[@Theretirementnerds]

Hi Jeff! Thank you for watching. Our financial advisors have a lot of compliance regulations around what they can and cannot share from this perspective. Sharing the actual file gets problematic. I could introduce you to one of them and they can go through your scenario with you and mess with numbers, but they aren't allowed to share the actual file. I wish I had a better answer for you, they are just held under certain rules concerning the distribution of something like this. [e-mail] is my email though if you'd like me to introduce you.

[@jeffshadrick3550]

I completely understand. Thank you.

[@scottharper9645]

We how used to make 200K-400K per year and were in the top income bracket are thankful for the income rates after retirement. I spent 40 years working and investing/saving to create an income stream that duplicates the highest income year in my working life some I would never worry about my income after retirement.

[@Theretirementnerds]

Smart! Thank you for watching and sharing your experience. Many people start late and don't think about it until it's too late - for lots of different reasons. Great job making and sticking to a plan!

[@Winkkin]

Never saved a dime during my 30 years with the city. So I've never lost money on inflation. I buy current year good with current year wages. Averaged 95K/Yr during 15 of my 30 years. retired on a 56K pension that has a guaranteed 2% escalator. This year is my 10th year of retirement and Ill pull in 66K plus 25K in social security. I'll never have to worry about taking an RMD or paying taxes at 24% on the additional income, but I never sacrificed by saving during my working years so they could tax me on it later in life.

[@datsva4ya]

This video calmed my anxiety. I just started to receive ssdi. They gave me 30k backpay and I now have to use it as part of income and pay taxes on it. I thought it would be a big big big amount, it's not lol.

[@Theretirementnerds]

So glad it was helpful! Almost done with the 2024 update. Very similar, just simplified :)

[@donerickson7305]

The main thing to remember is ss benefits are not taxed unless you have other income

[@mikep490]

True for most people, not all. I might have hit the first bracket had I not been in the military (indentured servant wages) followed by working for the USPS (no SS tax).

[@thomasklein4265]

Also important to realize that while tax free Muni bonds aren't taxed directly, their income could push your Social Security to be taxed under these equations and the Government does not care how they get the tax, just that they do.

[@richardmikesell632]

I noticed on your chart that the age was under 65. I’m 67 and use Turbo tax. I still pay taxes on social security due to pension income of $22,000 and my social security is $24,000. I file single. Does this sound correct? By the way I loved the video. Thanks!

[@Theretirementnerds]

The difference between this chart for someone under 65 and someone over 65 is the standard deduction that shows up at 10:32 in the video. The standard deduction is different for over 65 :) Looks like you still may have some of your Social Security that would be taxable based on what you shared. Happy to connect you with one of the financial advisors to go over your situation if you'd like. My email is [e-mail] Thank you for watching!

[@Satjr35031]

From your figures your Federal tax next year should be just over $1,200

[@12397bmw]

I’m grateful for your assistance but I did have one more question, if I was to get a part time job that combined with my ssdi yearly income does not exceed 25k than no taxes need be paid, or would it still be taxable as I’m working just not full time?

[@Theretirementnerds]

This will depend on a few factors such as filing sigle or joint, what percentage of that $25k is Social Security income vs working income, etc. Would you be comfortable sending me an email to [e-mail] and we can get more information to give you a better answer? I got an email today that has a similar question. Is that you?

[@12397bmw]

⁠@@Theretirementnerdsno I haven’t sent you an email, and I’m sorry to say that I can’t send you said email as I don’t have a part time job yet. However I am single and 12.6k would come from ssdi.

[@madameclark3453]

I have always lived below my income. I’m planning my retirement now, surprisingly, I’ll have more discretionary money in retirement than when I worked.

[@Theretirementnerds]

That's a great place to be! Thank you for watching and sharing

[@patriciaminnick1355]

Would you be able to share the calculator that you reviewed with us on the video ?

[@Theretirementnerds]

Hi Patricia, we don't have that one in a shareable format, but we are making a new one to update this for 2024 and we're planning on making a shareable version :)

[@sunnymagnuson1809]

Im looking at 2023 . 2022 is history sir!

[@Theretirementnerds]

Thanks for watching. We'll make another video like this for 2023. This video you watched was published in Febrary of 2023 when people were filing 2022 taxes 🙂

[@hgk45874]

What about "Social Security" from other countries ? I get small monthly payments from Germany and Canada. Are they treated the same way as regular pensions or added to the SS income ?

[@jet0715]

Hello, quick question, I am a 62 yo retired Federal employee. I get a monthly annuity and have Federal tax taken out of that. My wife still works and has Federal tax (10%) taken out each paycheck. This past year we got a Federal tax refund of over $2k. Since I turned 62 two months ago, my SSA Supplement ended. Starting this month I will begin receiving my Social Security benefit payment which works out to be about $700 more than my SSA supplement was per month. My question is, since my wife and I received a good amount from last years Federal tax return, am I required regardless to have additional Federal tax taken out of my Social Security benefit even if I think we are paying adequate Federal Taxes on our income? Thank you.

[@Theretirementnerds]

No you are not required to hold back fed taxes from your SS benefit. It’s optional. But if you don’t end up holding enough back, you’ll just have to pay it during tax time! We agree with you that you probably don’t need to 🙂

[@Turnitupluber]

What if you started SS in May? Do the IRA distributions from January thru April count towards adjustments. First year of taking SS

[@Satjr35031]

The months are not figured in It is the IRA that you received that year That is used

[@douglasrager294]

So I am I terested about the same kind of scenario, but only if you wait till your full retirement age or beyond . ??

[@lizadivine3785]

Could you please do another vid for single filers? Thanks!

[@Theretirementnerds]

Absolutely! Working on the new one for 2024 🙂

[@lizadivine3785]

@@Theretirementnerds oh terrific! Thanks so much!

[@1MinuteFlipDoc]

please post the worksheet as a 'google sheets' workbook. TY!

[@Theretirementnerds]

Thank you for watching! The regulations our financial advisors are under do not allow this, unfortunately. If you'd like to go into more depth on your personal situation, they'd be happy to meet.

[@10speed4]

I understood all that you explained but it should would make life easier if I could buy a copy of that spreadsheet, lol. Any chance you sell it?

[@Theretirementnerds]

So glad it was helpful! Unfortunately, we aren't able to sell it. The things shown are a small part of a larger analysis our advisors run. The financial advisors that are part of this are under strict guidelines around distributing that sheet, however, if you'd like to meet with one of them to go over it all, you can shoot me an email to [e-mail] It never costs anything to meet with them and discuss these options. Thank you for watching!

[@10speed4]

@@Theretirementnerds im turning 65 in October too so I’ll hollar at you or a representative of your company.

[@Theretirementnerds]

Sounds great! Happy to help in any way we can!

[@rodneylw10]

What about "other income" being pension? It is interesting that when you are getting a pension they do not count pensions as income but apparently they do when considering taxes- it seems.

[@Theretirementnerds]

Yes, pension income goes in the AGI box. This is the updated video with the downloadable spreadsheet: kzbin.info/www/bejne/Y5rJp2mPa9Kcnc0