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How Social Security is Taxed in Retirement

What you need to know about taxes and Social Security

Find out important information about taxes and your social security on this episode. Then download your FREE Queer Money Kickstarter, a 9-step Guide to Kickstart Your Journey to Financial Independence.

How a portion of your Social Security benefits may be subject to taxes

‘When I’m able to start drawing on my Social Security, that’s when I’ll be able to relax.’ SAID NO ONE EVER. What’s worse is that many don’t realize they may have to pay taxes on Social Security in retirement.

On this episode of Queer Money®, we explain how taxes and Social Security will affect your retirement. We review who qualifies for Social Security and who doesn’t and discuss the advantage of waiting until you reach full retirement age before claiming benefits. We also describe when Social Security payments are subject to federal income tax and how your total income in retirement impacts whether those benefits are fully, partially or not at all taxed.

Listen in to understand what states and foreign countries tax Social Security income and learn how to minimize the taxes you pay in retirement!

Listen to get insight on taxes and social security

Topics covered on taxes and Social Security

  • Who qualifies for Social Security benefits (and who doesn’t)
  • The benefit of waiting until you reach full retirement age before you claim Social Security benefits
  • Smart strategies for taking money out of your retirement accounts
  • Why we suggest using a tax sinking fund vs. prepaying taxes when you withdraw money from a tax-advantaged account
  • When Social Security benefits are subject to federal income tax
  • How the portion of your Social Security benefits subject to tax depends on your total income in retirement
  • Potential sources of income in retirement and how they affect taxation of your Social Security benefits
  • How to determine whether your Social Security benefits will be fully taxed, partially taxed or not at all subject to federal income tax
  • How to minimize the taxation of your Social Security benefits
  • The 10 US states that tax retirees’ Social Security benefits
  • What foreign countries charge taxes on US Social Security income payments

 

 

Resources on taxes and Social Security

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We’re David and John Auten-Schneider, the Debt Free Guys (www.debtfreeguys.com), and the Queer Money® podcast hosts. We help queer people (and allies) live fabulously, not fabulously broke, by helping them 1) pay off credit card debt, 2) become part- or full-time entrepreneurs and 3) save and invest for retirement.

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