Double tax (Page 2): You are exactly right - all of my income IS SS income, so there is no tax liability. I don’t have any other income. There is a minimal amount I can make and still...

Randyhartford Loc: Lawrence, Kansas

Frank romero wrote:

If all of your income is social security I underst... (show quote)

You are exactly right - all of my income IS SS income, so there is no tax liability. I don’t have any other income. There is a minimal amount I can make and still not have to pay taxes or have a deduction in my SS check.

plumbob Loc: New Windsor Maryland

Randyhartford wrote:

You are exactly right - all of my income IS SS income, so there is no tax liability. I don’t have any other income. There is a minimal amount I can make and still not have to pay taxes or have a deduction in my SS check.

I don't know your age Randy but come time to start RMD withdrawals might affect your status.

nutz4fish Loc: Colchester, CT

Frank romero wrote:

If all of your income is social security I underst... (show quote)

Actually, Frank, there's more & that results in triple dipping. The amount of your income from pensions, investments, and other sources, dictates how much your social security payments are reduced to "pay for" your Medicare coverage. Was a surprise to me when I applied for SS. 🤬 .

Randyhartford Loc: Lawrence, Kansas

plumbob wrote:

I don't know your age Randy but come time to start RMD withdrawals might affect your status.

RMD ?

saw1 Loc: nor cal Windsor

Randyhartford wrote:

RMD ?

Required Minimum Distribution.
When you reach 72 or 73 you have to make minimum withdrawals from retirement accounts.
Use to be 70.1/2 but they raised the age bracket.

Frank romero Loc: Clovis, NM

nutz4fish wrote:

Actually, Frank, there's more & that results in triple dipping. The amount of your income from pensions, investments, and other sources, dictates how much your social security payments are reduced to "pay for" your Medicare coverage. Was a surprise to me when I applied for SS. 🤬 .

I pay for Medicare from social security, and on my earnings from my part time job.

Randyhartford Loc: Lawrence, Kansas

saw1 wrote:

Required Minimum Distribution.
When you reach 72 or 73 you have to make minimum withdrawals from retirement accounts.
Use to be 70.1/2 but they raised the age bracket.

Being self employed, I had a SIMPLE “IRA” that I funded for many years, but due to my gains and losses from trading stocks, the capital gains taxes, along with the tax laws, bit me in the butt.
We had to refinance the house, then the mortgage got sold to a crooked co. (Citi) and they tried to foreclose (long story - you may have read about or heard on the news). Anyway, I had to end up cashing out my “IRA” and paying off my mortgage to keep from losing my property. So…
no distributions left.
BTW I’ll be 70 on 3/4. Yippee!!

Frank romero Loc: Clovis, NM

Randyhartford wrote:

Being self employed, I had a SIMPLE “IRA” that I f... (show quote)

Happy birthday early.

Placerville Loc: Northern California

saw1 wrote:

As of Jan 2024 there are 9 states that DO tax social security benefits.
Colorado, Connecticut, Kansas, Minnesota, New Mexico, Rhode Island, Utah and Vermont.

And California depending on your income. They have a sliding scale they go by, the more you make the more of it is taxed.

Placerville Loc: Northern California

Frank romero wrote:

If all of your income is social security I underst... (show quote)

That is the way in California too. I only get a little of my SS because I have a government pension. It does not matter how much I put in.

plumbob Loc: New Windsor Maryland

Randyhartford wrote:

Being self employed, I had a SIMPLE “IRA” that I f... (show quote)

Randy, if you have anything other than a bank savings account or a Roth IRA. The Gov declares that you withdrawal a percentage pending the saving amounts on all your accounts starting at the age of 73. A hefty penalty will occur if one does not comply.

However if it is like you say that you have nothing tied up, you are in the clear.

saw1 Loc: nor cal Windsor

Placerville wrote:

That is the way in California too. I only get a little of my SS because I have a government pension. It does not matter how much I put in.

Up to a certain age. Then you can make as much as you want and still SS. Right?

Frank romero Loc: Clovis, NM

saw1 wrote:

Up to a certain age. Then you can make as much as you want and still SS. Right?

They will still tax part of it if you make over so much money. I don’t remember the actual amount.

Randyhartford Loc: Lawrence, Kansas

Frank romero wrote:

Happy birthday early.

Thanks, Frank!
Almost up to my “quota” age…
Three score and ten. 🥴

Randyhartford Loc: Lawrence, Kansas

plumbob wrote:

Randy, if you have anything other than a bank savings account or a Roth IRA. The Gov declares that you withdrawal a percentage pending the saving amounts on all your accounts starting at the age of 73. A hefty penalty will occur if one does not comply.

However if it is like you say that you have nothing tied up, you are in the clear.

Right - the SIMPLE is all I had. Now my “retirement” is all in property and liquid assets. I just sold my lake property at The Ozarks in November. I bought the property while I was still in school
(Jr. High - High School), and my parents had bought adjacent lots, that I ended up buying from them, several years ago before either of them passed. Turned out to be a great long-
term investment, as well as a nice “camp site” near the lake for many years. Sold the property to a very nice young lady from KC, who had already bought the property right across the road from mine down there. Win-win!