U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 01-07-2015, 11:22 AM
 
1 posts, read 1,674 times
Reputation: 10

Advertisements

I will be 66 on oct.15,iwould like to draw ss right away,my monthly benefits for age 65 is 1,730 do not make over 41,000 a yr. would my benefit go up when i get to 66 or remain at 1,730,need extra money for bills
how much % is federal tax for social security benefits
Reply With Quote Quick reply to this message

 
Old 01-07-2015, 11:54 AM
 
13,320 posts, read 25,565,364 times
Reputation: 20505
As I understand it, your benefit does not go to the 66-year-old level just because you turn 66. It will go up with whatever COL raises there are, if any. If you draw at your full retirement age, your income does not matter.
Reply With Quote Quick reply to this message
 
Old 01-07-2015, 12:07 PM
 
527 posts, read 1,090,780 times
Reputation: 679
When you start receiving a SSI benefit check, the only change it will have will be annual COL changes.

If you are younger than your "Full retirement age", when you start receiving a check, you will lose $1 for every $2 for wages over about $15,400 (this year)earned.

Once you have attained your "Full retirement age", you can make whatever wage you want and not lose money.
But the check amount remains the same as when you started.

The calculation for your Full retirement age is calculated down to the month, so that date could be when you turn 66 years and 3 months etc.

Depending on how much other income you have, you "may" pay income tax on at least some of your SS benefits.
A portion of your SS yearly benefit (like 50%) may have to be added to your other income amount.
and tax paid on the total.
If you have no other income, besides your SS, you will not have to pay income tax on it.

Suggest you go into a SS office and talk to them.
Reply With Quote Quick reply to this message
 
Old 01-07-2015, 12:27 PM
 
Location: OH>IL>CO>CT
5,237 posts, read 8,406,103 times
Reputation: 7191
As brightdoglover said, at whatever age you start SS benefits, the amount will be fixed (except for COLA adjustments) for the rest of your life. If your estimated benefit for exactly age 65 was $1730, then a 65 year plus a 3 or 4 months would be slightly more to account for the additional months ( but never equal to full age 66 amount.

See this SSA webpages for more detail

Retirement Planner: Can You Take Your Benefits Before Full Retirement Age?
http://www.socialsecurity.gov/pubs/EN-05-10147.pdf

If you continue working, your benefits will most likely be taxed. The % RATE will be whatever "tax bracket" your IRS 1040 "taxable income" places you in. The % OF benefits that are taxed is variable also.

See Benefits Planner: Income Taxes And Your Social Security Benefits for details. It gets a little involved, there are worksheets and examples at :
Publication 17 (2014), Your Federal Income Tax
Reply With Quote Quick reply to this message
 
Old 01-07-2015, 12:43 PM
 
Location: Wisconsin
21,541 posts, read 44,018,537 times
Reputation: 15150
Quote:
Originally Posted by djgriff49 View Post
I will be 66 on oct.15,iwould like to draw ss right away,my monthly benefits for age 65 is 1,730 do not make over 41,000 a yr. would my benefit go up when i get to 66 or remain at 1,730,need extra money for bills
how much % is federal tax for social security benefits
No, your benefit does NOT go up when you reach age 66 if you begin SS one year early. If your full retirement age is 66 and you begin benefits at age 65, you receive a reduced benefit - forever - because you chose to begin benefits before your full retirement age. Benefits are reduced approximately 6.6% annually (5/9 of one percent = 9/5 =.55% x 12 = 6.6%) - permanently - as follows:
Quote:
In the case of early retirement, a benefit is reduced 5/9 of one percent for each month before normal retirement age, up to 36 months.


Early or Late Retirement
If you earn $41,000 the year you begin benefits, SS may not dock you, depending on when you've earned that money - BUT that SS income IS taxable.

Without getting into the arcane details, assuming you're single, if you'll be earning $41,000 the year you begin collecting, as a general rule, plan on paying 15% taxes on 85% of your SS benefit. In other words, if your benefit is $1,730, 85% of that, or $1,470 is taxed at 15%, or $220 of that monthly benefit goes to taxes - worst case.

In reality, there is a tiered formula as to how that 85% is calculated which will reduce that $220 somewhat. But, for your purposes, plan on $220 per month. You will either need to increase your withholding at work to compensate for these additional taxes, or file quarterly estimated payments with the IRS, unless you can find another way to shelter this big jump in your income - like making deposits to tax-deferred accounts such as IRAs, 401ks, HSAs,

Last edited by Ariadne22; 01-07-2015 at 01:22 PM..
Reply With Quote Quick reply to this message
 
Old 01-07-2015, 02:50 PM
 
4,574 posts, read 7,060,700 times
Reputation: 4222
Personally I'd wait until you are 66 (assuming that is your full retirement age) since you will not have to worry about how much money you make this year, for one thing, and I think you will feel better knowing you got at least your full retirement benefit that you have coming. Fed tax is generally 20% but depending on your tax situation, you can have whatever amount you want withheld. Remember, you will only be getting SS for two months (Nov-Dec). I would figure out a way to pay your bills some other way, and hang in there another 10 months if you can. Once you start collecting, you are stuck with that amount for life (except for COL increases which aren't that much).
Reply With Quote Quick reply to this message
 
Old 01-07-2015, 03:10 PM
 
Location: Kountze, Texas
1,013 posts, read 1,159,699 times
Reputation: 1267
My DH is a retired Federal Law Enforcement Officer - he is telling me that when he reaches 57 (which at that age would have been mandatory retirement) he will be losing the $1 for every $2 - is that because he is getting the FERS Supplement that
approximates the Social Security benefit?
Reply With Quote Quick reply to this message
 
Old 01-07-2015, 03:49 PM
 
Location: Wisconsin
21,541 posts, read 44,018,537 times
Reputation: 15150
Quote:
Originally Posted by House4kids View Post
My DH is a retired Federal Law Enforcement Officer - he is telling me that when he reaches 57 (which at that age would have been mandatory retirement) he will be losing the $1 for every $2 - is that because he is getting the FERS Supplement that
approximates the Social Security benefit?
Your issue is completely different than that of OP's and Off Topic to this thread.

WEP and GPO effects on SS/govt retirement benefits and vice versa are discussed - in detail - here:

Social Security & the "windfall"

Social Security reduced for a pension

and others. Just search for WEP, windfall, GPO.

Start your own thread on this issue, if you want further discussion - or post a question to one of the above threads. We've got a couple of experts on this board who might be able to help explain how this affects your husband, in particular.

Last edited by Ariadne22; 01-07-2015 at 04:03 PM..
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top