Income Taxes: Social Security Federal Income Tax

[@chrissmith4879]

Hans, I like your videos, you explain things in laymen’s language, easy to understand, not too complicated, and you don’t beat around the bush, you get right into the topic. Your an excellent speaker. Thankyou.

[@stanleybuck4195]

Its a shame that retired people have to pay federal income tax on their social security income. Instead of 15% tax free it should be 100% tax free.

[@richardargst157]

You are getting a Federal welfare check. Be grateful, not whiny.

[@michael7054]

Great video!

[@generatorjohn4537]

Hans, Great explanation on social security taxable income. The way I see it, persons or couples on the bottom rung of the "middle class" will probably be falling into that 85% tax threshold. Where I live $44 K complete income for a couple isn't much money and I see most people in the 85% category. BTW - You have great videos.

[@CardinalAdvisors]

Thank you

[@donaldhays2135]

I retire at 66 last year with benefits my wife just turn at 62 apply for social security drawing it from my social security @ 30% question is do I have to paid taxes she has not work anywhere she is a home maker I draw 28000 yr on my part she'll get 9000 yr

[@JohnR72]

Clear and concise answered my question!

[@teresacesario6247]

Excellent presentation Hans.

[@JohnA000]

Thank you Hans. I'm from the Raleigh area and I have been trying to figure out how much I should be taking out of my IRA and how much to convert to Roth so I can keep more of my money rather that let the man have it. It is very confusing but your videos are helping a lot. I turn 72 next year so I am not taking the RMD yet.

[@CardinalAdvisors]

Hans "John" Scheil Certified Financial Planner™ 2530 Meridian Parkway, Suite 100 Durham, NC 27713 P: 919-535-8261 C: 919-714-3397 www.CardinalGuide.com [e-mail] America’s Medicare & Long Term Care Financing Expert

[@jeanettebonf631]

Thank you

[@Dumbluck14]

They need to update the provisional income tables. They haven’t been updated since 1983 . So they are collecting tax off income dated 1983!!! Just pisses me off!

[@mikeodum9843]

Great videos!

[@sweetkicker4192]

And dont forget what the income can do to how one gets charged for Medicare Part B.

[@JohnR72]

Thank you!

[@faustogonzalez8397]

great video, thank you!!

[@stevenburmeister1484]

So if 1/2 of our S.S. and my pension plus interests and div. are less that $34000, our S.S. is not taxed?

[@davenone7312]

I dont understand how combined income includes "Non taxable Interest"Whats the point of being nontaxable if its added to your income?

[@joycewright5386]

Because the federal government screws retirees with taxes!

[@jr2040]

The non taxable interest is used to give a higher amount of combined income, then it is not reported on form 1040 and not directly taxed. Same thing with capital gains and qualified dividends - increases the SS combined income but CG or QD is taxed at capital gains rates later.

[@tauatavae6457]

I come from American Samoa, what time to pick up my social security tax pls,file on February 28

[@shelleyzoe8254]

OK, Form 703 from the fed , clearly says income regardless of deductions which is not my AGI so can I use my AGI or not????

[@strokerace4765]

I get $24,000 a year pension and $26,000 SS. My wife makes $60,000 as a teacher. Would it be smart for us to file married filling seperatly?

[@davenone7312]

Also we use half of our SS benefits to find out if its taxable? That makes no sense . Shouldn't SS benefits be exclusive not inclusive in determining if its taxable? Because when doing it this way it makes half of SS income to determine if you hit a threshold to put a tax on itself.

[@richardargst157]

You are getting a Federal welfare check. Be grateful, not whiny.

[@davenone7312]

@@richardargst157 It's not welfare! We all pay into it.

[@richardargst157]

@@davenone7312 You paid SS taxes but not so you could receive a future benefit. The SS taxes you paid went to other recipients. There was never an account for you. SS is a huge Federal transfer program, young workers pay taxes to support old people like us. This is how all welfare programs work.

[@vanguardvaluist2614]

Do Roth assets (Roth 401k & Roth IRA) count toward combined income totals? If not, it would seem to be a great way to provide an additional income source while completely avoiding any tax consequences. Also a possible opportunity to convert pre-tax assets for an early retiree in the initial low income years prior to taking SS payments.

[@CardinalAdvisors]

You are correct. Withdrawals from Roth IRAs do not count toward combined income. Roth conversions in your 60s make a lot of sense. Thx Hans

[@juangarcia8828]

Social Security is Federal welfare for seniors. A totally undeserved benefit.

[@tomtrotto6922]

Hans: a little confused about S/S that’s taxed. I get the 85% above $44K for joint returns but in your calc equation you state only half of S/S is added to your additional income is to be taxed. So isn’t that effectively 42.5% of S/S that’s actually taxed? Pls set the slow learner straight!

[@CardinalAdvisors]

1/2 your SS + your other non social security taxable income is the formula to determine if any of your Social Security if taxed. If you exceed the threshold, 50% of your social security income is subject to tax at your tax rate. The more other income you have, the 50% becomes 85% of your social security is subject to tax. That means at least 15% is tax free. Many clients are in the 10% tax bracket, 12%, 22%…… Hope this helps

[@factchecker9358]

Wouldn't it be easier not tell us if these levels are cliffs or not?

[@jr2040]

Going above the $32k level - SS is taxable but at a gradual increase. It is not 50% as soon as you go over the threshold but goes 1 - 50% as your income increases to $44k. Same for going above $44k, it increases 51% to 85% as the income increases. If you do it pencil/paper, be careful as you might calculate SS taxable amount over the 85% limit..

[@jeanettebonf631]

Single

[@cherylcampbell7495]

Where does my social security go after I die with no spouse?

[@CardinalAdvisors]

Social Security ends when you pass away.

[@1001legoboy]

Is SS taxed at ordinary tax rates ?

[@CardinalAdvisors]

Taxed at ordinary rates. 15% of it is always federal tax free

[@jimmeyer9075]

Do you combine both you and spouse for ss total

[@CardinalAdvisors]

Yes. Combine them

[@thelonesafetyguy]

What the name of the book you are holding?

[@CardinalAdvisors]

“The Complete Cardinal Guide to Planning For and Living in Retirement” by Hans Scheil available on Amazon. Thanks

[@CarlosRuiz-qk9hq]

SS taxes should be much higher. It is an undeserved benefit and the increased taxes could help pay down the deficit.

[@richardargst157]

I'm 67 and recently immigrated to America. How can I collect a Federal welfare, SS, check like all of you are?

[@joycewright5386]

You pay into it like the rest of us did.

[@richardargst157]

@@joycewright5386 I didn't live here, does that mean I can't have a federal welfare check like you?

[@joycewright5386]

@@richardargst157 Lol I don’t know. I just know that my taxes go up to pay for the people that never worked here.

[@richardargst157]

@@joycewright5386 Do you mean Americans?

[@truthistruth2928]

I believe you are lying and just trying to make fun of those collecting SS. I worked hard all my life and paid into this sorry excuse of a retirement. I could have done better investing in a private account. Now those that are collecting SS disability and have been long before retirement age and are not really disabled in which I know quite a few and are working making money on the side cash. These people need to have to pay all of it back and the taxes. They are scum!!!

[@meesacreef]

Thank you!