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Not yet but I plan to look for a job soon. We agreed that I would be a stay at home mom until he retired at which point I will be able to get back into the workforce. We are looking at adding another $7000-$25,000 annually...depending on where I get a job and whether it is part-time or full-time. (I have over 15 years' experience under my belt of being an Executive Assistant, which may [or may not help in my job search).
Some people have to pay federal income taxes on their Social Security benefits. This usually happens only if you have other substantial income (such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return) in addition to your benefits.
No one pays federal income tax on more than 85 percent of his or her Social Security benefits based on Internal Revenue Service (IRS) rules. If you:
file a federal tax return as an "individual" and your combined income* is
between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits.
more than $34,000, up to 85 percent of your benefits may be taxable.
file a joint return, and you and your spouse have a combined income* that is
between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits
more than $44,000, up to 85 percent of your benefits may be taxable.
are married and file a separate tax return, you probably will pay taxes on your benefits.
*Note:
Your adjusted gross income
+ Nontaxable interest
+ ½ of your Social Security benefits
= Your "combined income"
Sorry, missed that distinction. It is taxable income, but at that level, no tax will be paid. I based my answer on the apparent intent of the question based on the wording By the OP. I read it as "will we pay any taxes on this amount of pension?"
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