Questions: Paying taxes on Social Security Benefits in Retirement (spouse, 2013, retired)

[rdflk]

I get that if you make over a certain amount up to 50% and up to 85% of Soc. Sec. benefits could be taxed. (I'm single.)

I've read that if you make over 25K up to 50% of SS may be taxed and if you make more than 34K up to 85% of SS may be taxed.

My question is....is there a chart or formula showing a GRADUATED percentage of SS that's taxed -- BETWEEN earning 25K and 34K...OR....does the taxable amount of Soc. Sec. just JUMP from 50-85 percent, even for 1 dollar over 25K.

I'm trying to find a chart showing for example what percentage of Social Security benefits is taxed if you make 26k, or 28K or 30K.

I've read IRS Publication 915. Didn't see what I'm looking for.
Thanks

[texdav]

No; there is not a chart of amount to tax. But you can get a quick idea by searching your question; Figuring table amount of SS and you'll get some which will give a quick glace of general amount. Or you can go to last years booklet and tax form kept and plug the figures needed in the form for figuring SS amount taxable.

[rdflk]

I'm not retired yet, and have no idea what my income will be in retirement. Just wondered if the percentage of taxable income was graduated or just jumped.

All you see or read is up to 50% could be taxed or up to 85% could be taxed. Are there levels in between? Because IF SO, then a person might choose to work, and earn at level that's between those two taxation percentages.

[reed303]

It does not work like the 10-15-25% "bracket" rates. Basically the 85% figure is fixed. And the 25K = single and the 9K = single deductions are fixed. What is variable is your total "SS taxable" income. So after your SS benefit value is reduced by half (50%), and 25k+9K deductions are taken, the resulting $$ figure is what the 85% factor is applied to, and becomes part of your 1040 total taxable income.

You should use Worksheet 1 at Publication 915 (2013), Social Security and Equivalent Railroad Retirement Benefits ( or from a 1040 paper instruction booklet) and do some "what-if" calculations to see the effect that more wages, etc has on your "net effective tax rate".

There is also on-online Q&A calculator at Are My Social Security or Railroad Retirement Tier I Benefits Taxable?

Last year my own % of SS benefits that were taxed at my bracket rate was 10.28, this year looks like 12.67.

This can be confusing. But if you do a few "what-ifs" you may begin to see the overall effect.

Good Luck.........

[rdflk]

I was hoping some various possible scenarios had been worked out already and were available somewhere.

Reed, what the 9K (for singels) deduction you mentioned?

[reed303]

Originally Posted by rdflk

I was hoping some various possible scenarios had been worked out already and were available somewhere.

I suppose some kind of chart or graph could be developed but it would be fairly complicated itself to take into account all the variations the worksheet, or the on-line calculator, looks at.

Reed, what the 9K (for singels) deduction you mentioned?

From Worksheet Line 11

"Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apartfrom your spouse for all of 2013"

It is another figure used to arrive at the taxable amount, if it fits your situation.

( the "2013" changes each year)

It is a convoluted calculation, in the best tradition of IRS tax forms

[rdflk]

Thanks....grateful for the deduction. But basically to me, it looks like another figure they just pulled out of their arses.