Friday, October 24, 2014
1012 C Street  •  Floresville, TX 78114  •  Phone: 830-216-4519  •  Fax: 830-393-3219  • 

Lost & Found

Lost: Diamond set in gold mounting prongs, fell off my wife's wedding ring, in Floresville, reward offered. 210-867-1319.
Lost: Small black female dog, no collar, her name is Shortcake, has long hair, Sutherland Springs area. Call 830-391-5099.
Found tan hunting dog. Elderly male not neutered or chipped. Please call 8303915099.
More Lost & Found ads ›

Help Wanted

The City of Stockdale is accepting applications to fill the full-time position of Field Employee. A Class ‘D’ Water or Waste Water license preferred but not required to apply for job position. A complete job description and application may be  obtained from Monday–Friday, 8:00 a.m.–5:00 p.m. at City Hall, 700 W. Main St., Stockdale, Texas 78160. Deadline to submit a job application is by 5:00 p.m. on Monday, November 3, 2014. The City of Stockdale is an Equal Opportunity Employer.
Billing and Shipping Rep. needed for local manufacturer in Elmendorf. Responsibilities: customer service, sales order entry, bills of lading, internet sales and shipping, filing, and answering phones. Requirements: high school diploma or GED, packaging and shipping knowledge preferred with DOT and HAZMAT. Excellent benefits offered.  Fax 210-635-7999 Email resumes@vpracingfuels.com; 7124 Richter Road, Elmendorf, TX.
More Help Wanted ads ›

Featured Videos





Video Vault ›

Savvy Senior


SS benefits: taxable or nontaxable?




E-Mail this Story to a Friend
Print this Story

Disclaimer:
Jim Miller is responsible for this content, which is not edited by the Wilson County News or wilsoncountynews.com.
Jim Miller
The Savvy Senior
January 18, 2011 | 1718 views | Post a comment

Dear Savvy Senior,

Do I have to pay income tax on my Social Security benefits? I just turned 62 and am seriously considering early retirement. What can you tell me?

Ready to Retire

Dear Ready,

When you start collecting your Social Security retirement benefits, a portion of it might be taxable depending on your total income level and marital status. Here’s what you should know.

Crunch Your Numbers

About one-third of people who get Social Security have to pay income taxes on their benefits. To figure out if your benefits will be taxable, you’ll need to add up all of your taxable income from pensions, wages, interest, dividends and other sources, plus any tax exempt interest you earned (such as interest on municipal bonds) and one-half of your Social Security benefits. (You’ll receive an SSA-1099 form in the mail each January reporting your Social Security benefits for the previous year.)

To help you with the calculations, get a copy of IRS Publication 915 “Social Security and Equivalent Railroad Retirement Benefits,” which provides detailed instructions and worksheets. You can download it at www.irs.gov/pub/irs-pdf/p915.pdf. Worksheets can also be found in the IRS 1040 (www.irs.gov/pub/irs-pdf/i1040.pdf) and 1040A (www.irs.gov/pub/irs-pdf/i1040a.pdf) instruction booklets. To receive any of these publications via mail, call the IRS at 1-800-829-3676 and order them.

Taxed or Not

After you do the math, Uncle Sam says that if you’re single and your total income from all of the listed sources is:

•Less that $25,000, your Social Security will not be subject to federal income tax.

•Between $25,000 and $34,000, up to 50 percent of your Social Security benefits will be taxed at your regular income-tax rate.

•More than $34,000, up to 85 percent of your benefits will be taxed.

If you’re married and filing jointly and the total from all sources is:

•Less that $32,000, your Social Security won’t be taxed.

•Between $32,000 and $44,000, up to 50 percent of your Social Security benefits will be taxed.

•More than $44,000, up to 85 percent of your benefits will be taxed.

If you’re married and file a separate return, you probably will pay taxes on your benefits.

How to File

If you find that part of your Social Security benefits will be taxable, you’ll need to file using use Form 1040 or Form 1040A. You cannot use Form 1040EZ. You also need to know that if you do owe Uncle Sam, you’ll need to make quarterly estimated tax payments to the IRS or you can choose to have it automatically withheld from your benefits.

To have it withheld, you’ll need to complete IRS Form W-4V, Voluntary Withholding Request (www.irs.gov/pub/irs-pdf/fw4v.pdf), and file it with your local Social Security office. You can choose to have 7 percent, 10 percent, 15 percent or 25 percent of your total benefit payment withheld. If you subsequently decide you don’t want the taxes withheld, you can file another W-4V to stop the withholding.

State Taxes

In addition to the federal government, 14 states -- Colorado, Connecticut, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont and West Virginia -- tax Social Security benefits to some extent too. For details, check with your state tax agency or visit retirementliving.com -- click on “Taxes by State.”

Savvy Tip: For more information on taxable Social Security benefits call the IRS help line at 800-829-1040, or visit an IRS Taxpayer Assistance Center (see www.irs.gov/localcontacts) where you can get face-to-face help.

Jim Miller is a contributor to the NBC “Today” show and author of The Savvy Senior book. Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit http://SavvySenior.org .
 
« Previous Blog Entry (January 11, 2011)
 


Your Opinions and Comments
Be the first to comment on this story!

You must be logged in to post comments:



Other Savvy Senior
Resource Links savvy senior
Savvy Senior blog bio side
Sacred Heart SchoolTriple R DC ExpertsDrama KidsAllstate & McBride RealtyBlue Moon Karaoke & DJChester WilsonVoncille Bielefeld homeWilson's Auto ChooserHeavenly Touch home

  Copyright © 2007-2014 Wilson County News. All rights reserved. Web development by Drewa Designs.