Over the past few years, I have noticed articles in magazines/newspapers that stated that social security benefits are not taxed, if you make additional income, AFTER reaching the FULL retirement age.
Looking at the September 2007 version of IRS Notice 703, I see no such exemption.
What's the truth?
It's two different rules, one for taxation of benefits and one for reduction of benefits (although the end result may look the same to the recipient of benefits).
IRS only deals with taxation of benefits, which depends solely on your unadjusted taxable income (before deductions and exemptions) and your tax-exempt interest. Your normal retirement age is irrelevant.
At the SSA web page link shown here:
-Mark Bole
Thanx.
That's what I thought, but I've seen articles that stated that SS was not taxable after full retirement age. I should know better than to believe what I read in mags/newspapers.
The relevant info is, I guess, in the SS Benefits Worksheet on page 28 of the instructions for form 1040 for 2006.
Have something to add? Share your thoughts — no account required.
Ask the community — no account required