While few people enjoy "writing" a tax check ... I prefer having a larger income that almost always will require you to pay taxes ... minimizing taxed income ... great. Having all the money to do the things I need and/or want to do -- priceless.
If you are already retired and are living in a big house that you can't afford the upkeep on, move into a smaller "senior" apartment and rent out your bigger house, for a lot more than your senior apartment. You are now able to make repairs on the house and deduct the repairs as business expenses. You might be able to get your adjusted gross down so low that you pay no taxes at all. Then in some states you can claim your own rent off from state taxes. Where I live we can take off up to $3000 a year on state taxes. You can depreciate some of your house costs but it's a double edged sword because you can't keep as much if you sell your house, so speak to a really good tax accountant before doing that.
Kevin - I am so glad I came across your RUclips videos. They are very helpful and informative so thanks for posting. BTW, I'm a big Modern Family fan too. Favorites are the Pritchett kids Claire and Mitchell.
Thanks for sharing knowledge to help others, people will remember this and seek out your help down the Road.. I just did this after 12 yrs with a home restore company, except this time the Son was running the show and his did was the guy that helped me 12yrs ago..👋😊🙏💪☝️👍
If we want to do a tax cut, do it on all SS payments. That’s 500 billion over 10 years. The trump tax cuts were 2 trillion over 10 years. I can guarantee you the tax cuts on all SS checks would be more popular.
60% of the population would not benefit from tax cuts on social security. In the 40% who would benefit have very high retirement incomes. And it would endanger the social security system for the 60% who actually need social security.
@@macmcleod1188 How would it endanger SS? Income taxes paid on taxable SS does not go to SS. And I disagree that 40% have VERY HIGH retirement income. Is $70k very high? Because they would be taxed a decent amount.
@@markreid7 the way you kill social security is by removing support for it among people aged 50 and younger. And the way you do that is by changing the date they can get social security to be so late that they will never benefit from it This is a classic and basic political technique. I'm surprised I need to explain it. It's a variation of the strategy of "first they came for...". Raise social security taxes on the wealthy and retain the 67-year-old retirement age for everyone.
Thank you for an informative video. My situation is probably as simple as they come. I quit working at 65 & hoping to delay taking my SS until 70. At that point my wife will be at her FRA & her SSD will turn into to the standard SS benefit. She will then qualify for 50% of what my FRA was & that will be more than hers. SS will be our only income. I was a high earner so our combined SS will come close to $85,000 annually. We have no debt & should be able to live fairly comfortable on that. Your calculator shows that we will only owe a few hundred in Federal taxes. I'm sure bridging through all of our savings to get to 70 is not what most people should do but it will work for us.
Assuming your portfolio is making a higher return than Social security, it would make more sense to take social security earlier to let the portfolio grow longer. Surprised you did not mention this scenario.
It's not hard to get a pension. You can join the military, become a police officer, fire fighter, work at the post office or work for the federal government. It's not rocket science but some of these fields are very demanding on your body, mind, and family. Good luck and God bless.
great video . Can you make onefor freelancers? You're in CA, where there are a lot of them. How do you save with a freelance work? How do you have a 401k, a HSA, etc.
One thing that is lost in your video is someone who retires at 62 needs healthcare. Most often then not that requires obama care. This will drastically reduce the possibility of doing any roth conversions or withdrawals from taxable accounts. The higher your income. the less subsidy you will get.
Pension? Only people i know who have pensions any more is government employees or union employees. The rest of us are living in the real world. 60k in SS ??? My parents together were under 36k. Wow.
The real world is when one works for an international organization for 30 years. At re end of that tenure yo receive the deserved pension which you paid into during that tenure!! Educate yourself before you spew nonsense!!
Hubby has two pensions for working for a public hospital and school system. Between his pensions and our SS, we will have an annual income of close to $100k per year once he retires at 70 outside of our retirement savings. Before 70, we will pull in at least $55k. So, pensions are still out there.
You only mention W-2 income. I get 1099s for my freelance work. Do they use the gross amount from that form? Or do they use your AGI? I have quite a bit of write-offs that reduce my AGI to almost nothing. I plan on continuing that work after I start collecting Social Security.
We need a national pension fund to replace Social Security and it should be tax free. We can still have a type of social security insurance system that provides a disability benefit that can be a small percentage that everyone contributes towards. The current system was well intentioned but is long outdated. Every child born should have an account established with an initial fund to start taking advantage of compound interest over time. This fund would be professionally managed with strict risk tolerances. Everyone could still have other retirement options if they wanted to retire early.
Hi Kevin, Am I right with this >>> If someone continues to work full time past age 70 and at the same time collects SS pension, does that mean that 85% of the SS pension will be added to the full-time income, and IRS will tax the grand total (full-time income + 85% of SS pension) accordingly, right?
That’s correct. Assuming you’re over the threshold. Also, I’d you haven’t reached FRA age there’s another consideration. ruclips.net/video/Xz-hSe5gJuk/видео.html
In the first example you say they only make $30,000 which is half of 60,000. You say they don't have to pay any taxes on social security but then you don't mention anything about standard deductions and that they actually do have to pay taxes even if that's their only income. This is why people get so confused
Great Strategies. One question, you mentioned around 8:30 that holding internatonal funds in a taxable account (strategy 3) provides for a rebate and will come through as a tax deduction. Did you mean to say a tax credit instead of a tax deduction? I ask because it is considered a foreign tax credit and a tax credit is much, much better than a tax deduction. Just wondering.
I receive VA disability compensation and am paid at a rate higher than 100%. My annual compensation is $51,799. If I do not work and also receive my Social Security retirement... does my VA disability compensation have any affect on if and how much my SS retirement is taxed? I forgot to mention that I am single, if that matters.
That’s a tricky one. It’s my understanding that since your VA disability compensation is not considered part of your gross income, it won’t directly impact this calculation. However, any other income you have, including tax-exempt interest and other benefits, may affect whether your Social Security benefits are taxable.
I would highly suggest to call the Social Security Adminstrarion and let them guide you. Anytime I have a question I call them because they are accurate. Devin Carroll is fabulous in knowledge also.
No tony....you're VA disability is completely tax free and it isn't considered in the combined-income formula. If u choose not to work and u don't have RMD's to worry about (starting in your early 70s) you should be good to go. I'm also receiving VA disability and drawing my ss benefit as a single person. I live in AZ where there's NO state tax on ss benies...my income limit is 13.5k per year for single filer and since I'm choosing not to work I'm not subject to any income tax at all...both federal or state. I won't have to worry about RMD'S for at least another decade as I'm only 62. I was able to retire early at 59 because of my VA medical coverage...thank God I didn't have to sign up for obamacare....what a joke that is!!
If a couple majes less than $32000 in todays environment they would be considered below the poor theshhold I would think. These numbers are ridiculous. Same for single person
I have a question about taxable accounts and international companies I have in my brokerage account with fidelity 2 companies that are international so give me your opinion one is call Medtronic which their headquarters are in Dublin Ireland y the other one is Linde I don’t know which country they are but since you say I can get some type of credit if I over load can I leave these companies in my account and every year when I receive my form I shouldn’t worry to pay fees or penalties because it’s a foreign company or what can I do with these companies thanks ahead of time for your answer.😊
States that tax Social Security in 2024 are Colorado, Connecticut, Kansas, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont. No way to evade it. Even if it's your only income.
Is your Social Security benefit being taxed?
Sadly yes@ 85 percent every year
Yes, 85% of it, unfortunately. Wish I realized it would be that way years before I did.😢
Yep, it’s hard to fix later in life.
Is the Social Security Benefit on the calculator the gross dollar amount paid by S.S. or net amount (less Part B premium? ) Thank you!
just at 85% to start really sucks that it didn't go up with inflation increases
While few people enjoy "writing" a tax check ... I prefer having a larger income that almost always will require you to pay taxes ... minimizing taxed income ... great. Having all the money to do the things I need and/or want to do -- priceless.
This shows how interlinked everything is? This causes that? Withdraw too much too avoid tax or RMD causes IRRMA On Medicare? So damn complicated!
If you are already retired and are living in a big house that you can't afford the upkeep on, move into a smaller "senior" apartment and rent out your bigger house, for a lot more than your senior apartment. You are now able to make repairs on the house and deduct the repairs as business expenses. You might be able to get your adjusted gross down so low that you pay no taxes at all. Then in some states you can claim your own rent off from state taxes. Where I live we can take off up to $3000 a year on state taxes. You can depreciate some of your house costs but it's a double edged sword because you can't keep as much if you sell your house, so speak to a really good tax accountant before doing that.
Some states don't tax SS benefits....Arizona is one of them
Kevin - I am so glad I came across your RUclips videos. They are very helpful and informative so thanks for posting. BTW, I'm a big Modern Family fan too. Favorites are the Pritchett kids Claire and Mitchell.
Thanks! I appreciate your kind words. It’s such a fun show.
Thanks for sharing knowledge to help others, people will remember this and seek out your help down the Road.. I just did this after 12 yrs with a home restore company, except this time the Son was running the show and his did was the guy that helped me 12yrs ago..👋😊🙏💪☝️👍
If we want to do a tax cut, do it on all SS payments. That’s 500 billion over 10 years. The trump tax cuts were 2 trillion over 10 years. I can guarantee you the tax cuts on all SS checks would be more popular.
60% of the population would not benefit from tax cuts on social security.
In the 40% who would benefit have very high retirement incomes.
And it would endanger the social security system for the 60% who actually need social security.
@@macmcleod1188 How would it endanger SS? Income taxes paid on taxable SS does not go to SS. And I disagree that 40% have VERY HIGH retirement income. Is $70k very high? Because they would be taxed a decent amount.
@@markreid7 the way you kill social security is by removing support for it among people aged 50 and younger.
And the way you do that is by changing the date they can get social security to be so late that they will never benefit from it
This is a classic and basic political technique. I'm surprised I need to explain it.
It's a variation of the strategy of "first they came for...".
Raise social security taxes on the wealthy and retain the 67-year-old retirement age for everyone.
Thank you for an informative video. My situation is probably as simple as they come. I quit working at 65 & hoping to delay taking my SS until 70. At that point my wife will be at her FRA & her SSD will turn into to the standard SS benefit. She will then qualify for 50% of what my FRA was & that will be more than hers. SS will be our only income. I was a high earner so our combined SS will come close to $85,000 annually. We have no debt & should be able to live fairly comfortable on that. Your calculator shows that we will only owe a few hundred in Federal taxes. I'm sure bridging through all of our savings to get to 70 is not what most people should do but it will work for us.
Assuming your portfolio is making a higher return than Social security, it would make more sense to take social security earlier to let the portfolio grow longer. Surprised you did not mention this scenario.
It's not hard to get a pension. You can join the military, become a police officer, fire fighter, work at the post office or work for the federal government. It's not rocket science but some of these fields are very demanding on your body, mind, and family. Good luck and God bless.
great video . Can you make onefor freelancers? You're in CA, where there are a lot of them. How do you save with a freelance work? How do you have a 401k, a HSA, etc.
Thanks! I’ll put that on my list.
Yes please!! Single member LLC freelancer. this would be VERY helpful.
One thing that is lost in your video is someone who retires at 62 needs healthcare. Most often then not that requires obama care. This will drastically reduce the possibility of doing any roth conversions or withdrawals from taxable accounts. The higher your income. the less subsidy you will get.
if 1000 = 1000 reg taxable income +850 social security taxable income what % are you paying? How about 22% bracket?
Keep in mind that the standard deduction is now 15,300.
Which makes the 34,000 really 47,000.
Pension? Only people i know who have pensions any more is government employees or union employees. The rest of us are living in the real world.
60k in SS ??? My parents together were under 36k. Wow.
Ahh, So there's still companies that have pension's and 401k matches..🤔😎👍
The real world is when one works for an international organization for 30 years. At re end of that tenure yo receive the deserved pension which you paid into during that tenure!! Educate yourself before you spew nonsense!!
@@Silverfox-oj4cw Not the 'real world' the rest of us live in... come into the real world..
Hubby has two pensions for working for a public hospital and school system. Between his pensions and our SS, we will have an annual income of close to $100k per year once he retires at 70 outside of our retirement savings. Before 70, we will pull in at least $55k. So, pensions are still out there.
@@elbonian1166Translation: I don’t have that, so anyone that does must not live in the real world.
You only mention W-2 income. I get 1099s for my freelance work. Do they use the gross amount from that form? Or do they use your AGI? I have quite a bit of write-offs that reduce my AGI to almost nothing. I plan on continuing that work after I start collecting Social Security.
We need a national pension fund to replace Social Security and it should be tax free. We can still have a type of social security insurance system that provides a disability benefit that can be a small percentage that everyone contributes towards. The current system was well intentioned but is long outdated. Every child born should have an account established with an initial fund to start taking advantage of compound interest over time. This fund would be professionally managed with strict risk tolerances. Everyone could still have other retirement options if they wanted to retire early.
Depreciation is good for cash flow, but if you ever sell the depreciated property, you have a 25% depreciation recapture tax.
That is very true - if you sell. But, often real estate becomes multi-generational. But, you’re correct and it often catches people by surprise.
Hi Kevin, Am I right with this >>> If someone continues to work full time past age 70 and at the same time collects SS pension, does that mean that 85% of the SS pension will be added to the full-time income, and IRS will tax the grand total (full-time income + 85% of SS pension) accordingly, right?
That’s correct. Assuming you’re over the threshold. Also, I’d you haven’t reached FRA age there’s another consideration.
ruclips.net/video/Xz-hSe5gJuk/видео.html
Past 70 doing full-time anything, they deserve more than a Standing Ovation👋😊💪👍
all my money should be Roth and the little amount ill draw from my brokerage if needed along with my SS i should be at 0%
In the first example you say they only make $30,000 which is half of 60,000. You say they don't have to pay any taxes on social security but then you don't mention anything about standard deductions and that they actually do have to pay taxes even if that's their only income. This is why people get so confused
I’m just talking about what portion of their benefit is included in taxes from a Social Security perspective.
Wisconsin does
Great Strategies. One question, you mentioned around 8:30 that holding internatonal funds in a taxable account (strategy 3) provides for a rebate and will come through as a tax deduction. Did you mean to say a tax credit instead of a tax deduction? I ask because it is considered a foreign tax credit and a tax credit is much, much better than a tax deduction. Just wondering.
Yes! I hadn’t even noticed I said that. Yes, credit.
I receive VA disability compensation and am paid at a rate higher than 100%. My annual compensation is $51,799. If I do not work and also receive my Social Security retirement... does my VA disability compensation have any affect on if and how much my SS retirement is taxed? I forgot to mention that I am single, if that matters.
That’s a tricky one. It’s my understanding that since your VA disability compensation is not considered part of your gross income, it won’t directly impact this calculation. However, any other income you have, including tax-exempt interest and other benefits, may affect whether your Social Security benefits are taxable.
I would highly suggest to call the Social Security Adminstrarion and let them guide you. Anytime I have a question I call them because they are accurate. Devin Carroll is fabulous in knowledge also.
No tony....you're VA disability is completely tax free and it isn't considered in the combined-income formula. If u choose not to work and u don't have RMD's to worry about (starting in your early 70s) you should be good to go. I'm also receiving VA disability and drawing my ss benefit as a single person. I live in AZ where there's NO state tax on ss benies...my income limit is 13.5k per year for single filer and since I'm choosing not to work I'm not subject to any income tax at all...both federal or state. I won't have to worry about RMD'S for at least another decade as I'm only 62. I was able to retire early at 59 because of my VA medical coverage...thank God I didn't have to sign up for obamacare....what a joke that is!!
If a couple majes less than $32000 in todays environment they would be considered below the poor theshhold I would think. These numbers are ridiculous. Same for single person
Well it’s the provisional income, so they could make 60k+ - but I agree, they’re insanely low.
I have a question about taxable accounts and international companies I have in my brokerage account with fidelity 2 companies that are international so give me your opinion one is call Medtronic which their headquarters are in Dublin Ireland y the other one is Linde I don’t know which country they are but since you say I can get some type of credit if I over load can I leave these companies in my account and every year when I receive my form I shouldn’t worry to pay fees or penalties because it’s a foreign company or what can I do with these companies thanks ahead of time for your answer.😊
You’ll want to talk with your CPA about the specifics.
@@foundryfinancial I don’t have any
I was told rental income doesn't count.
Towards what, your provisional income for SS or your social security earnings?
States that tax Social Security in 2024 are Colorado, Connecticut, Kansas, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont.
No way to evade it. Even if it's your only income.
Or retire at 55 and take 7 years to roll the IRA into a Roth.... Then draw Social Security at 62.
Exactly how are you paying your bills under this scenario?
If people don't pay taxes, they will not receive a refund. Paying taxes, will help those coming behind, leaving the door open.
:30 thank you President Reagan.
How to avoid pay SS tax -
1. don’t take SS 😂.
2. Take IRA or 401K, pay tax on that 😂.
Brilliant advices 😂
There's no way to avoid the tax. It's the formula for the tax. Don't say "how to pay zero". What a waste of a time.
Only 48% of people make it to age 70
That’s false, at least in the US. I don’t know the global numbers. In the US if you remove infant mortality, your chance of living to 70 is over 80%.
One way is, Never take social security.
Ha. True
Or take it, and donate all of it to charity maybe.
I came here looking to get out of paying social security. I don’t like paying for leeches that sold me down the river
Eight strategies to save paying Social Security tax. Elect Trump. He wants to eliminate this affront.
Vote blue, no matter who.
You can’t fix stupid 🤦🏼♀️
Looking for pension taxless states. I'm in ca