Calculate Social Security Tax Due

[RonaldE82202]

I am an Illinois resident planning on early retirement . Can anyone explain how I determine my tax liability . Do I add my pension benefit , plus 85% of SS for an annual income ? What I don’t know it how to determine the tax rate ? Can anyone help clarify what my actual real dollar SS payment will be ?

[cat0w · Accepted solution]

@RonaldE82202  Have you visited the Social Security website and created an account? The United States Social Security Administration (ssa.gov)

Have you looked at the Income Tax site?

2021 Form 1040-SR (irs.gov)

Internal Revenue Service | An official website of the United States government (irs.gov)

1040 (2021) | Internal Revenue Service (irs.gov)

Social Security Benefits Worksheet

1040 (2021) | Internal Revenue Service (irs.gov)

[GailL1 · Accepted solution]

You only have to pay a tax on your SS benefit IF you are over a certain income.  

Maybe this will help you do an estimated for 2022 once you know your income after retirement. 

IRS Notice 703 (Rev Oct. 2021)

This one just tells you if the benefit is taxable.

Here's the actual IRS instruction for 2021 and the worksheet.  To figure it more closely to the amount that will be taxed use the (2021) actual worksheet for a closer approximation.

IRS 2021 Form 1040 /1040 SR Instructions

You can find the instructions for completing Line 6a/6b (Social Security) of Form 1040 on page 29, the worksheet is on page 31.

Just to give you a bit more info - if you have to pay any tax on your social security benefit, thank you from all of us, cause the amount is not an income tax - it is a Social Security retirement tax and goes back to the General SS Trust Fund to help keep it afloat.

[DaveDeal]

Is that income other than SS that has to be over $25K or a combination of SS & other sources of income?

[fishdoggy1]

I am not a tax pro but forget the tax till you determine how much you will get in Social Security, that plus income like a pension will determine how much gets taxed and at what rate

[cat0w · Accepted solution]

@RonaldE82202  Have you visited the Social Security website and created an account? The United States Social Security Administration (ssa.gov)

Have you looked at the Income Tax site?

2021 Form 1040-SR (irs.gov)

Internal Revenue Service | An official website of the United States government (irs.gov)

1040 (2021) | Internal Revenue Service (irs.gov)

Social Security Benefits Worksheet

1040 (2021) | Internal Revenue Service (irs.gov)