How to avoid paying tax on your social security benefits! Social security can be taxable, but there are strategies you can implement to make sure you never have to pay tax on your social security!
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Mike Bernard, CFP® offers advisory services through KFG Wealth Management, LLC dba Korhorn Financial Group. This information is for general financial education and is not intended to provide specific investment advice or recommendations. All investing and investment strategies involve risk including the potential loss of principal. Asset allocation & diversification do not ensure a profit or prevent a loss in a declining market. Past performance is not a guarantee of future results….(read more)
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Bill Clinton diverted 3 TRILLION OUT OF SOCIALSECURITY FUND. THAT IS WHY THEY ARE BROKE. DON'T YOU LOVE CLINTON?
That is a plausable approach, but there are a number of things to consider. When you wait to draw your SS past your FPR you lose the opportunity to invest those dollars. There is also the possibility you may die early and in the case where you're married your spouse will lose your benifit since you did not file for it.
That's exactly what we did after receiving a Blue collar retirement package 6 weeks shy of 63. We have lived on cash for 4.5 years. We did Roth conversions for four years without paying any taxes. I will start my SS benefit at age 68. Two years beyond my FRA.
Renounce your miserable u.s citizenship and get your freedom,life back like I did
Roth conversion doesn't make sense
Most people have to draw at 62 anyways by the time you get seventy you're half-dead so you take it at 62 it isn't really that much difference you're going to have to live until 90 years old to make it even by that time you got one foot in the grave. ☠
The system is set up of by and for the rich. Thus the fed exists.
This countrys government has done everything possible and beyond to screw the citizens of this country until we die. This is why so many people have left and the numbers are going up.
Social Security should not be taxed at all in retirement since its purpose is to protect seniors from poverty.
WHY does it have to be taxed TWICE? Single and income is $27k year. No house payment, pay property tax (renting house from state), utilities, health insurance, car insurance and have tax taken out of SS, no city home stead I have county though. Try living off of that. Barely squeaking by (65 and Pissed off in Texas-worked 50 years for this BS).
If you were employed by a company (not self-employed) Social Security (FICA) was deducted from your gross wages and set aside into the Social Security system under a pre-tax designation. This essentially makes this income tax differed. When you begin to receive Social Security retirement benefits, this income, which was previously tax differed, is now subject to tax. I do not believe this is double taxation.
Social security is actually an annuity which is never a taxable item. That's how it was anyway however, Bill Clinton decided early in his term that its income and needs to be taxable income. So, he made it taxable and ever since those in retirement actually get less than they used to. Then, some of the states in the USA also tax it. It is truly a shame, folks who paid into a FICA system for decades are now being taxed on that same money again. This is why it is important to know who you vote for. With much hope, the next election will bring someone in who ends this tax and restores the system as it should be. So sad too because after maybe ten years of inflation at maybe 2% per year, social security benefit increases will never keep up with that rate, folks actually fall behind if they compare their payments to inflation rates. So, as folks pay into FICA and get their raises and pay higher amounts into FICA those who are retired never see increases of their benefits at that rate. Those who retire today and collect their SSA will likely have just enough to pay their property taxes, electric, gas, water, insurance, internet bills and nothing left for rent or other expenses if they own their home.
Just think of all the seniors that were lost due to Covid. Social security sure made out on that epidemic.
64, love my job. at 66.5 I will start to draw ss. I figure it is a senior bonus while I still work full time. Yah, I'll be taxed on my bonus. Big deal.
Wise Money, most people do not have the kind of money you are talking about and who has a certified financial planner? Not most people. Thanks, good info for some.
How to get rich: first you get a million dollars – Steve Martin.
When he says 50% of social security is taxed if income is high does that mean 50% of your social security is taxed or the whole income is taxed at 50%?
Wow
Politicians “borrowed” from Social Security and never paid it back. That is why it is going to insolvency,. They screwed us over big time,,,,they need to put that money they took out needs to be put back in there, It should have been illegal to do what they did,
What happens if you are on permanent disability??
I quit my full-time job 2 years ago and started working part-time about time then I quit my part-time job last May 2020 all with the same employer when I filed my taxes this year I had five months income and was told next year I won't need to file taxes because all I have is Social Security 4 income but it might be wise to go ahead and file taxes to make sure there's no fraud by somebody else using my social security number I have had AARP do my taxes the last three years so that doesn't cost me anything
It has changed. WTF c'mon dude it has changed… You should know this. Here's a free suggestion. Move to a state where its NOT taxed. There are quite a few.
The creeps in the government taxed social security because the don't care about seniors. We already paid tax on al the money taken by FICA and then When you FINALLY get it – they tax that too. Roth IRA? – great, they make you wait 5 years to get your tax free interest. It's all crap. People voted these idiots in. you get what you wanted. The government totally screwed up social security and medicare. now they are in the health insurance business – good luck America.
REAGAN BEGAN TAXING PENSIONS AND SOCIAL SECURITY ! HE GAVE MASSIVE TAX CUTS FOR HIS RICH FRIENDS !!!
Well, one pays tax on the Roth conversion, so one doesn't escape tax doing that. The real hit is when one is forced to take RMD (age 72 now), which drives up AGI and thus makes more of SS taxable.
ONLY IF YOU HAVE NOT CLAIMED YOUR BENEFIT AT YOUR FULL RETIREMENT AGE…. will you be susceptible to having a portion of your SS taxed (based on other income; pension, another job, dividends, etc). In other words, you decide to claim your SS early, at 62. Or 65, for instance. –––– BUT IF YOU TAKE YOUR SS AT FULL RETIREMENT AGE (age 70), you WILL NOT be taxed on any additional income. You will receive your full SS benefit. (That's why many people wait until 70, or longer [as you get even more money], to then claim their SS benefit). ––– Remember, you get an addition 8 percent benefit every year AFTER your full SS retirement age. So, the lesson is (1) stay healthy, and (2) keep working, and (3) claim your SS while in your 70s!!!
Good Video, thanks. You do look like the actor Michael Pena (End Of Watch, Fury, American Hustle, Gangster Squad).
If you take money from a 401k and put it into a Roth don’t you get taxed first?
My plan was I learned to live within my means. I've been retired a year now, and I still live paycheck-to-paycheck. I wish I could have done it sooner
They need to get rid of the marriage penalty tax. I will pay no taxes this year on my social security, but if I get married I'll be paying tax on 85% of it.
It is NOT double taxation- it works just like the IRA. Do the math
I have a ?. I am taking SS starting In June, rather than me take out taxes, my husband works, can I increase wis withholdings to cove what might be the tax on my ss.
Federal Government is the greediest entity on planet earth.
How do you stay in the 12% tax bracket with a hundred thousand dollar conversion, even with the standard deduction you'd still be in the 22% bracket ??
Thank Ronald Regan the first president to raid the trust fund … On April 20, 1983 Ronald Regan and the Republicans laid the foundation for 30-years of federal embezzlement of Social Security to pay for wars, tax cuts and other government programs. To make matters worse, the payroll tax hike of 1983 generated a total of $2.7 trillion in surplus revenue that was supposed to be invested in U.S. Bonds and held in trust until the baby boomers began to retire. But, none of that money went to Social Security. You can also thank Regan and the Republicans for the Immigration Reform Act of 1986 legalizing 2.75 million illegal immigrants overnight paving the way for the 11 million that are here today. These two events Republicans fail to bring up or conveniently forget … Two of the biggest issues facing Americans today can be traced back to Ronald Regan and the Republican Party.
I am 71 yrs old. My only income is my Social Security. Is my Social Security income taxable? It is only about $17,000 annually. With that I am paying off 2 hospital bills and 2 credit cards little by little.
What about the pmt of 800. or less, is that taxable? Basically sole income
This was very very nice!! You have three very easy ways to make money now, so you bother after retirement; Crypto, Real Estates who can guess the last one?
@Scott s – you are great to tell the truth. Not only did I wait to claim my benefits til I was 70 but still working I get to continue to pay into the govt. Their motto is just I lived to long and they have better ways to spend that money. SSA is a ripoff for Baby Boomers!
Double tax is on 35% SS benfit
April, 1983. Ronald Regan.
Great tips. I'm 61 now and making plans to retire close to 65. Thank you.
The whole social security system is a sham. Whoever made these ridiculous rules doesn’t live on social security. You are forced to stay in poverty.