How to Pay ZERO Taxes on Social Security | 2024/25

[@jeffb.2469]

The Standard Deduction was not factored in when explaining the calculation.

[@pointreyes4272]

Most married couples filing jointly should increase their combined income including SS to $124,300 since the most you would pay would be 12% federal tax. 12% is not unreasonable.

[@michaelcollins8316]

I have an issue with two of your suggestions: 1, there are limits for debt harvesting that cause the tax payer to take a maximum allowed amount and carry the rest of the loss forward. 2, on income property again there are limitations that an individual may be subject to thus limiting the amount of loss that can be taken. I think that anyone wanting to use either of these strategies should examine them with good faith numbers and the tax laws before deciding if these strategies will really help lower income.

[@discoverglobeliving]

I remember helping my uncle with his taxes last year, and we found a way to reduce his tax on social security using deductions. Every bit helps when you're on a fixed income!

[@Satjr35031]

There is no tax on SS if that’s his only income regardless of how much he receives.

[@johnbwright]

Great breakdown! Thanks

[@HolySchmidt]

You bet

[@johnfbm]

Yeah thanks for confirming my worst fears 🤣

[@Kartguy1]

I don’t mind paying taxes on Social Security as long as I don’t get into 22% tax bracket. Married and Filed Jointly Over Age 65: Standard Deduction: $29,200 Extra Deduction Over age 65. $ 3,100 Total Adjusted Standard Deduction is: $32,300 10% Taxes $0 through $23,300 12% Taxes $23,301 through $94,300 $32,300 plus $ 94,300 ($126,300) is the income allowed and remain under 22% income taxes.

[@grannygoes7882]

The standard deduction was doubled by Trump and I didn't know about the extra $3100 so once I'm retired, my income will around $5000 LOL!!! Eventually I'll have to tap into my reg IRA though.

[@dennmillsch]

@@grannygoes7882 -- The Trump standard deduction was a godsend to lower income people, and also simplified taxes for many. But aren't they due to expire? And Democrats will probably let it happen if they are in power because they love taxes so much. Republicans may maintain the deduction, but will they stop the reckless govt spending?

[@Satjr35031]

You only pay the 22% for that amount you go over. Not your total income. Go over$1,000 you pay $220 on that instead of the 12% $120. The rest will be at the 10%-12%

[@dennmillsch]

@@grannygoes7882 -- I pulled my money out of my IRA and put it into a Roth during a few years since the great Trump tax reduction for the middle class. The 12% bracket will probably expire thanks to Democrats and go back up to 15%. If you're only at $5K you might consider pulling out $60K into a Roth and only get taxed at 12% now. Depends on other factors, like how much income you need to live. You might oughta talk to someone who can walk you through the options.

[@NiceyKlepfer]

Amazing video, you work for 40yrs to have $1M in your retirement, mean while some people are putting just $10K into trading from just few months ago and now they are multimillionaires

[@MrDistech]

And your point is?

[@BrynnSymington]

I really appreciate Mrs Laura Shin influence during this global pandemic lock down

[@BrynnSymington]

Same here, I'm blessed only. God knows how much I praise her, £32,000 every week! I now have a good house and can now afford anything and also support my family, and never will I forget to pay my tithes because God has been so faithful to me and my family

[@edwinna-u1w]

I'm from Birmingham England 󠁧󠁢󠁥󠁮󠁧󠁿

[@edwinna-u1w]

I really need help financially, how do I find her.?

[@davidtvedte1337]

I am 66 and have not started SS yet. I have run simulations to address if it makes sense for me to wait until 70. Because the formulas to calculate how much of your SS is taxable is not indexed to inflation the longer I live the greater the amount of taxable SS becomes. However, as some of you have pointed out the standard deduction is indexed, so that helps. Even with more of my SS becoming taxable later in life the net increase in total available to spend (or save) still is larger. As I will have not traditional retirement accounts and about 1/3 in a ROTH IRA, I will be possibly taking some out of the ROTH IRA even while I will have the other 2/3 in a taxable brokerage account. There are so many moving parts and every bodies situation is a little different.

[@Happybidr]

I was going to wait till 70 but decided to go ahead around my full retirement age for lots of reasons. I’m glad I did. Plus I got a big check cause I finally filed 6 months later. That was fun. (Younger Hubby still works.)

[@stevenj9970]

Jeff, how on earth are you able to talk and write in reverse at the same time? It was almost difficult for me to listen to what you were saying. I was watching you right on the board….lol

[@paperburn]

QOD: I plan on living in a foreign country when I retire. what is the tax rate on my SS.

[@rst90274]

I am 70 now and have been flooded with ads assuring me that they have a plan to avoid taxes on my 401K withdrawal. I am assuming lots of other folks get these ads also. I am very skeptical. I am a renter with no nifty tax dodges I can think of, no farms, no oil leases, or offshore accounts. Am I missing something?

[@20thcenturyrelic]

You could ask a tax accountant, but, I'd guess these are ripoffs.

[@georgewyse8378]

It is very specific to each person's exact situation, it's not a generic simple fix to pay no taxes. But, depending on the source of the money, you can have a relatively high income and pay little or no Federal taxes.

[@20thcenturyrelic]

@@georgewyse8378 Quite true.

[@brucebecker692]

When can I factor in the Standard Deduction in this calculation of $29,200, reducing taxable income?

[@l4xx03luyf6l0to]

Can you write backwards or do you use something to film it that way?

[@johnboyinfl]

Could be light board learning glass?

[@LTVoyager]

@@johnboyinflVery likely and the image is simply flipped left to right.

[@johnboyinfl]

@@LTVoyager The software that comes with these boards does that automatically.

[@LTVoyager]

@@johnboyinfl Yes, I know. I was simply explaining why the writing doesn’t have to be backwards to look like it is.

[@georgej8254]

Wrote it forward like normal on glass and just flipped the video in editing. Pretty smooth I'd you ask me.

[@scottprice4813]

These tax thresholds should have been indexed to inflation eons ago. The disparity between the very rich and average SS recipients is ridiculous with these super low thresholds . It’s 2024 not 1994.

[@lkd06]

That fact seems to be lost on most people

[@robertd..17]

Bingo!

[@tlr1604]

My question is you pay medicare-is this taken into account for taxes For example I figure my husband and I will take medicare A,B,D,G=$500 EACH total of $1,000 I figure I will make $1,500 on social security Do they only tax the left over $500?

[@sharkair2839]

is social security considered income? what about a pension?

[@splitliving]

Yes. Yes.

[@brucestiles6477]

Please correct me if I am mistaken. As I understand it, if a married couple has, say, $48,000 in Social Security income, but no other income: The first $32,000 of Social Security income is free of Federal income tax; 50% of the $12,000 of Social Security income between $32,000 and $44,000, i.e., $6000, is subject to income tax; and 85% of the $4000 between $44,000 and $48,000, i.e., $3400, is subject to income tax. Thus: $6000 + $3400 = $9400 is the total amount subject to income tax. But: Since the Standard Deduction (for 2024) is $14,600, no income tax would be owed. In fact, the couple could have an IRA withdrawal of up to $14,600 - $9400 = $5200 and still not have to pay any income tax.

[@markcummings6856]

I believe it’s one or the other…. I don’t believe Standard Deduction was factored in.

[@Satjr35031]

There is no Federal tax if SS is your only income even if you as a couple have $100,000 in SS

[@judyjrasmussen339]

@@Satjr35031 incorrect

[@tongsanchez]

You proposed that individuals wait until there full retirement age, what if if something happens to them and they die before full retirement? What happens to there SS? Nobody gets it huh? So why wait again?

[@captfred65]

I retired from the military. I have to pay taxes on this money. How does this relate with my social security income. Thank you.

[@markmcfarren1854]

i have social security and i take a monthley amount from my ira i pay monthley tax on ira will i be taxed on my social security if i stay under the 25000 for year help

[@MargaretMahan-cu2cc]

Combined income is one half total social security income plus tax free bond income and 401k. If total less than 25 k no taxes.

[@2012Edger]

Do they use gross income or adjusted?

[@kwaichangcaine8234]

Illinois does not tax social security, but say if I a 65 year old single man get $20,000 from social security and make $20,000 doing part-time work and then pay $10,000 in property taxes to Cook County Illinois ! Do I pay any income tax ?

[@todddunn945]

Yes you would. Your provisional income would be $30,000 ($20K in income + half of social security). That is $5K over the $25K threshold for a single person, so $2,500 of your social security would be taxable bringing your total taxable income to $22,500. The 2024 standard deduction for a single 65 year old is $16,550. So if you take the standard deduction your taxable income is $5,950 which is in the 10% bracket so your taxes would be $595. You can only deduct the property taxes if you itemize your deductions. That is only worth doing if your total itemized deductions are more than the standard deduction. What that means is you would get no tax benefit from the property taxes unless you had an additional $6,550 in other deductions on schedule A.

[@kwaichangcaine8234]

@todddunn945 thank you sir , that is what I was afraid of. I think property taxes should be tax deductible !

[@todddunn945]

@@kwaichangcaine8234 Property taxes up to $10K are deductible IF you itemize.

[@Satjr35031]

@@kwaichangcaine8234Then the standard deduction would be almost cut in half That could happen when the TCA expires end or 2025

[@EllenAlexander-x3h]

I guess I am screwed.

[@mvp019]

We're all in that boat...

[@Jeff-p5i2w]

This is why you hire a good tax accountant

[@whattheheck-ii2vt]

Exactly. I'm not trying to learn all of that.

[@ocean1233]

AGES

[@Robert17368]

what about your dedications?

[@Robert17368]

Bad spell check / I meant DEDUCTIONS

[@Happybidr]

@@Robert17368edit original comment

[@EllenAlexander-x3h]

Uncle Sam needs his untitled share.

[@SandfordSmythe]

Tax goes to SS

[@bricknercj]

So helpful! Thank you so much.

[@tamsterscott5957]

SPAMBOTS FOR SOME SCAMMER CALLED LAURA SHIN IN HERE

[@NiceyKlepfer]

Many people have become millionaires in trading because with the leverage involved in trading, people can make a fortune or lose it all very quickly so you need to engage and start making it too 😜

[@stanmarcusgtv]

where's the link to your site for the 3 IRS calculations regarding SS (up to 85% taxed) that determine taxable income?

[@rayluce290]

I'll second this query. I got excited at the 4:20 mark of the video, because I've not been able to find these formulas anywhere. Alas, no link. Can you please post a link to this information?

[@r.behlen7733]

Thank you for your videos!! Is rental income considered traditional? What impact does waiting until FRA have on these income calculations? Thanks again!!

[@Olivia-r3k]

Mr, Frank Micheal is truly a blessing. He is well-known for his excellent character and successful service here in USA

[@happy_exmo9422]

What is the effect of an annuity or pension on SS taxes?

[@dinbx917]

I guess, at age 69 and still working, it is too late to convert my TDA through public retirement system to a Roth, as I will be retiring soon and will be facing RMS withdrawals in a few years. Please advise. Will start SS income at age 70 in Sept of next year, still working that school year for lifelong paid health insurance by City of New York Ret Sys.

[@dinbx917]

I am worried about taxes on those RMDs! I forgot to say, but it seems like no time left to make up the taxed paid.

[@FWMCBigFoot]

I'm 99% sure that you can't access a Roth for 5 years from starting it without a stiff penalty. I looked into it a couple of years ago but chose not to because of the 5-year requirement.

[@stevensheegog3942]

Ok I’m in the 85% taxable bracket. I will just keep making my estimated tax payments.

[@20thcenturyrelic]

Well, since according to the Congressional Budget Office, the Social Security retirement fund will run out of money in 8 years, this is a short term problem. Just saying.

[@georgewyse8378]

You don't appear to have a good understanding of what they said will happen in about 8 years.

[@20thcenturyrelic]

@@georgewyse8378 Really? It was widely reported in the mainstream media. What are you expecting? Alien invasion? Nuclear war? Another, worse pandemic? In those scenarios, we'd have much worse problems.

[@SandfordSmythe]

There will be a reduction in SS, not a collapse.

[@FrankRizzo804]

Geoff, I heard Trump is proposing "no tax on Social Security" if elected. Have you heard about this? Any details would be appreciated.

[@HolySchmidt]

Hi Frank. I know that is a big promise from his campaign but he has not explain the methodology.

[@tracythompson1692]

@@HolySchmidtWhat methodology? SS will simply not be subject to federal taxation.

[@larrysmith5249]

I think this is highly unlikely. Campaign promises and reality live in two different worlds. At best he would adjust the IRS thresholds upwards so fewer people would pay tax and more people would pay less tax. However, there would be way to much tax revenue lost by eliminating all SS income from taxation.

[@jasonmoquin]

He says a lot of things. Well, 2 types of things, really. Lies he remembers and has no intention of ever doing and lies he forgets he tells and then claims he never said. Pick your poison.

[@dmarcog]

Leaving politics aside, there is a big bi-partisan push to end taxes on SS. However, the lost revenue needs to come from another place. They have to compensate the loss of revenue. They are talking about increasing retirement age and also increasing the cap on SS contributions so that the “rich” pay a more fair share as these caps reduce their total taxation. Bipartisan project. No party or candidate should claim this as their own idea.