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That is true. And it does not depend on your income, either. The federal taxable Social Security income I had from my mother's estate (Medicare payment refund) was fully deductible on my Ohio income tax, despite having an income of about $100,000.
PA doesn't tax SS and neither does the city of Philadelphia (school tax).
The total tax owed at age 70 can be significantly higher based on when one takes SS (assuming other income is interest income). Assume the SS taken age 62 is invested to yield the equivalent income through earned interest. I estimate I will get $57K from SS at age 70, three years from now. I estimate I would get $30K from SS at age 70 if I had started drawing it at age 62 (accounting for applied COLAs).
Income at age 70 if take SS at 70 (3 years from now): $57K from SS plus $10K in interest income ->
Fed tax due: $363. State tax due (flat 3%): $300. City tax due (flat 3.7%): $370.
Income at age 70 if took SS at 62: $30K from SS plus $37K in interest income ->
Fed tax due: $4885. State tax due: $1110. City tax due: $1369.
Total Tax Due -> SS started at age 70: $1037. SS started at age 62: $7364.
Yeah, that's what I am thinking. Not having SS taxed is another big Plus for maxing it out until 70.
Why do you care about this post count? Not only do I not know how to find out the post count by forum, I am not even interested in that trivia. In any case, we should be striving for contributing valuable, relevant and empathetic content (which you clearly do) rather than a post count. I do see some who post incessantly without a lot of substance and it gets old quickly…
A valuable, relevant and emphatetic content is, of course, appreciated, but sometimes I feel like simply bantering. Casual socializing :-). Surprisingly much info can come out of that too. I at least learn quite a bit about thought processes of people with whom I don't identify or agree, from what they say in their unguarded moments.
Re my post counts, of course that doesn't matter; it was partly a joke :-). People here talk about establishing your identity in retirement - I want to establish my identity as a "Retiree", and therefore want to have my highest post count in the Retirement forum! :-) My progress as of yesterday (the counts tally with a slight delay):
New York City: 3516
Retirement: 3005
Travel: 133
Great Debates: 113
Investing: 97
A valuable, relevant and emphatetic content is, of course, appreciated, but sometimes I feel like simply bantering. Casual socializing :-). Surprisingly much info can come out of that too. I at least learn quite a bit about thought processes of people with whom I don't identify or agree, from what they say in their unguarded moments.
Re my post counts, of course that doesn't matter; it was partly a joke :-). People here talk about establishing your identity in retirement - I want to establish my identity as a "Retiree", and therefore want to have my highest post count in the Retirement forum! :-) My progress as of yesterday (the counts tally with a slight delay):
New York City: 3516
Retirement: 3005
Travel: 133
Great Debates: 113
Investing: 97
Whoa, you might want to work on that Travel theme more.
Whoa, you might want to work on that Travel theme more.
Well, some other websites take care of that (where I mostly read, though, and very rarely ask something, strictly very specific to the travel destination; I banter aimlessly only in this website here :-). My ways of traveling are not very common, and resemble agnostic pilgrimages more than tourist travel (staying at hostels, to start with :-). But I am pretty selective with hostels, and you know what? Once I stayed at a 4-bed hostel dorm where coincidentally 3 of us were physicians and the 4th lady was a biochemist working in a hospital :-). So hostels are not necessarily a travel accommodation just for 20 year old vagrants :-). But I might devote more time to City DataTravel subforum, after I write 510 more Retirement posts. Ok, now back to taxation in retirement!
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Quote:
Originally Posted by elnrgby
.... My ways of traveling are not very common, and resemble agnostic pilgrimages more than tourist travel (staying at hostels, to start with :-).... I might devote more time to City DataTravel subforum, after I write 510 more Retirement posts. Ok, now back to taxation in retirement!
There are many travel topics / methods / bargains ONLY available to 'retirees' / age 55+, so if you are strategic you could keep them under your 'retirement' topics and add to your 510 required posts. (we too are very unconventional in our trips and use retiree travel hosting clubs and Home share / exchange, much less expensive than hostels (which we use and enjoy as well... including Ft Mason). One gal we stay with near GG park arrived from Sweden to SF as a 20 yo architect. 60+ yrs later, she's still a lot of fun and very entertaining. Last trip we stayed on Sutro Park, very nice place (free).
It may be quite 'taxing' to drum up 510 on taxation specific to retirement (But I'm sure it's possible).
Today, I just discovered 2 new ways to pay estimated IRS tax as a retiree (Backdoor withholdings). That will solve some timing issues since I have very irregular timed income with quite unknown amounts. It depends....
Well, the issue is the new tax in San Francisco on second homes with Elnrgby. So, it's still a tax related where you going to live topic. Apparently, the City of San Francisco wants to tax second homes to pay for the homeless. In some ways taxing people with extra houses makes some sense; but, it's a major change.
There are many travel topics / methods / bargains ONLY available to 'retirees' / age 55+, so if you are strategic you could keep them under your 'retirement' topics and add to your 510 required posts. (we too are very unconventional in our trips and use retiree travel hosting clubs and Home share / exchange, much less expensive than hostels (which we use and enjoy as well... including Ft Mason). One gal we stay with near GG park arrived from Sweden to SF as a 20 yo architect. 60+ yrs later, she's still a lot of fun and very entertaining. Last trip we stayed on Sutro Park, very nice place (free).
It may be quite 'taxing' to drum up 510 on taxation specific to retirement (But I'm sure it's possible).
Today, I just discovered 2 new ways to pay estimated IRS tax as a retiree (Backdoor withholdings). That will solve some timing issues since I have very irregular timed income with quite unknown amounts. It depends....
Cheapness is not my only objective, but I simply like the atmosphere of hostels. They became my lifeline after I got widowed and re-started traveling alone. They are like medieval inns for pilgrimages (once I encountered even an actual Catholic priest from Ireland staying in a hostel!). I do stay at the best available hostel in any place, and they have been surprisingly nice (I have had only one horror experience, where I stayed just for one night, in actually quite an expensive place for a hostel, which was advertised as a hostel but seemed really more like a long-term homeless shelter than a hostel. That was in Santa Fe, NM, but I think it was shut down - it was unspeakably awful, and I think some sort of city safety and sanitation inspection must exist; I don't see how that kind of authority would let that kind of "hostel" continue operating).
Anyhow, I do use AirBnB rooms in hosts' homes when I can't find a satisfactory hostel, but that is not too often. Regarding home exchange websites for seniors, I am aware of them, and had considered listing my 2nd condo (in SF) for that... but then, I was a small-scale landlord in the past, and had bad experiences with tenants, so would not dare let strangers stay at my place again. I prefer hostels anyhow (for the atmosphere, the travelers of all ages with their stories in the lounge at breakfast) and they are a simple travel solution, without bothering to set up my home for reciprocal hospitality, and without worrying about what a "guest" might do to me or my home. The small cost of hostels wouldn't warrant to me substituting it with that kind of worries, even if I didn't genuinely love hostelling.
Oh well, Kavm & admin, I guess this is still not about taxes in retirement...
But re paying ES tax as a retiree, I had been paying ES taxes as a self-employed person for 20 years, so ES tax is nothing new to me in retirement. My taxes are now very small (compared to what I was paying when I worked ), and I pre-pay them before April 15 (the deadline for the 1st ES tax installment) for the entire current year. I do that at the same time I file the taxes for the previous year; it is just an extra item on my tax-filing checklist. So my ES taxes are one-and-done in the 1st quarter of the year, and I pay the same amount I owed in taxes for the previous year (if you pay EST in the same amount you owed last year in total tax, or 110% of that amount for higher earners, you don't get penalized if your final taxes end up being higher than you expected/paid in EST installments).
That's incorrect. PA does not tax any retirement income: not Social Security, not 401ks, not IRAs, and not pensions (as long as you are over 60).
(ETA: Oh, my apologies, I mis-read your post . . . )
they tax it going in
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). That will solve some timing issues since I have very irregular timed income with quite unknown amounts. It depends....
), and I pre-pay them before April 15 (the deadline for the 1st ES tax installment) for the entire current year. I do that at the same time I file the taxes for the previous year; it is just an extra item on my tax-filing checklist. So my ES taxes are one-and-done in the 1st quarter of the year, and I pay the same amount I owed in taxes for the previous year (if you pay EST in the same amount you owed last year in total tax, or 110% of that amount for higher earners, you don't get penalized if your final taxes end up being higher than you expected/paid in EST installments).
