Is there any adjustment on a tax return for Social Security?
Full question: If a taxpayer went over their income limit for Social Security because they are under retirement age and they have to pay it back, is there any adjustment on their tax return because they already paid on 85% of their benefits. Hi there, This is largely a tax and IRS issue. The taxpayer…Read More
What happens if I am collecting Social Security and still working before my FRA?
Full question: I would like to file at 66 and 1 month for a birthday of 02/20/1957 but I’m still working. Is there a different tax rate if I’m not on my full age of 66 and 6 months? I’m going to continue working even longer but I need the money. Hi, Thank you for…Read More
I am collecting retirement benefits. Do my benefits increase since I am still working and paying taxes?
Full question: Do my retirement benefits increase because I am still in the work force and therefore still paying taxes? I am 67 years old, receiving monthly Social Security benefits and still working. Hi there, This is a great question. If you have already begun receiving your Social Security benefits you may still increase your…Read More
Will my Medicaid waiver payments reduce my Social Security benefits?
Full question: For caring for my adult disabled child in my home, I receive Medicaid waiver payments designated as “difficulty of care payments” under notice 2014-7, which are excludable from my gross income for both income taxes and FICA. If I begin to collect early retirement benefits before my FRA, do these payments above $19,560…Read More
Are taxable withdrawals from my 401k considered earned income?
Full question: Are withdrawals from my 401k considered “earned income” with respect to taxing my Social Security benefits? I understand how Social Security benefits can be taxed if you have earned income while collecting Social Security. I just don’t understand/know if taxable withdrawals from my 401k count as earned income. Thanks. Hi there, The earnings…Read More
Can I supplement my income by working past the age of 70?
Hi there, Yes, you can work past the age of 70 to supplement your Social Security income. Working past age 70 may or may not affect your Social Security income. Depending on your income, your Social Security could be subject to federal (and state, depending on where you live) taxation. Your future income even has…Read More