I've watched two of your videos and understand Social Security better than ALL of the other explanations I've heard on KZfaq. Thank you! I'm a subscriber!

I find the exception of the term "benefit." This is my money that I paid in starting at age 15!

I lucked out. Grew up poor and didn't take many retirement options, but got very lucky. Would have been paying taxes on only about $5k a year, the rest was tax free. I moved into a small apartment because it was too much work to keep such a large house clean. And put my house out as a rental. Had to fix a few things before I could rent it out. What I had not been aware of is that once my house became a rental, I was able to deduct most repairs, all property taxes, all insurance payments paid on that house from my taxes. I was paying almost everything I earned on rents to fix it up. Took all my paperwork to a tax accountant, and ended up having NO taxes at all. Also receive a deduction on my taxes for old age and another deduction for being disabled. My living expenses decreased so much while living in that small apartment that, in a couple of years, I was able to purchase a second house to rent out. I hired a realtor to handle both houses, am fixing up the second house, and have no taxes to pay for this year either. Whatever I'm doing, my tax accountant says it's all legal. So my property values are rising, houses look great, the realty is doing most of the work, and I'm just relaxing.

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

Awesome content!!!! I much rather watch these videos than all of the other videos that do not benefit me at all. Thanks Mr Martinsen. I truly appreciate you providing information that is help to US ALL. Im 53 years old and I was exploring the possibility to retire at 56 but this information is very helpful. I have two choices now...continue to work until 62 or retire at 56 and move to another country.

This is genuinely the best explanation I've seen so far! Good on you, Lane.

Best explanation on SS tax I have seen so far.

Hi Lane, great stuff, thanks. It would be helpful to confirm that provisional income is the same as combined income. Also, you show their tax due, it would be great to show their standard deduction and whatever other deductions they had times the applicable tax rate to get to that tax due. Again, thanks!

A retired person should not pay taxes Tax all the corporate entities and billionaires who pay nothing. It's always on the backs of the little guy.

Awe, was hoping you do CA

Two certainty in this world ,death and taxes

These examples are great and all but do you have the formula you followed to get these results and can you share it with us so we can figure out for our own personal situation?

Lane fantastic 😊 information!! Love all those different scenarios.

Why would they tax social security at all??? Don't make sense to me....

Provisional income is equal to Gross Income (not including SS) + 50% of SS income. It looks like there is an error in Example #3 at 2:54 in the Gross Annual Income. THe couple has a combined $3570 in SS Income. That equates to $42,840 annual. The 401K/IRA withdrawal of $6000/mo, equates to $72,000. Hence their Gross Annual Income, which he defines as the sum of all these taxable incomes, is $114,840 (and not $136,944 as shown in video).

Very informative. Thank you.

If I've already paid taxes on the money I paid into social security, why do I have to pay taxes again when I get it back?

Only government can screw it up this much. There are millions of social security recipients who would take on these lower paying jobs, except for the fact that they will pay extra taxes on their social security based on a formula that was put in place and has not been changed since 1984. Simply stop the taxes so that anyone drawing social security will pay the same taxes as anyone else. Government will still draw fica, and empolyers would get some relief.

Thank you, Ronald Reagan, for signing into law a tax on social security, putting further strain on Seniors. "Government is the problem"? Yeah, and you were part of it.

Back to the drinking game! Every time he says sochacurity, take a shot.

Very helpful and educational. Thank you.

I would appreciate your advice on the way I am thinking. My retirement income puts me in a tax bracket. As long as I can pay the taxes on the re-characterization amount, would it be wise just to convert from Traditional to ROTH IRA the amount that keeps me inside that bracket? Is there any truth to the rumors that these brackets are changing this year?

thank you for this video , this really helps me understand

Excellent, excellent. I have a question and I will deeply appreciate it if you answer my question. Let us assume, I was born in August of 1958, and I will retire, God willing, at the age of 70 in 2028. in 2022 COLA was 5.9%, in 2023 it was 8.7%, in 2024 it looks like it will be 2.7% and let us assume that in the following years, each year, COLA will be 1%. So, if we add them the result will be 21.3%. Will COLA total 21.3%, be added, to my social security annual check which, let us assume, will be $35,220 ? 21.3% + yearly SS amount $35,220= $42,697.6 ? I am just asking, I do not know the mechanics. Thanks in advance.

Thanks for the great content. You are one of the sharpest dressers on KZfaq, by the way.

great content as usual.may i assume that if my monthly ssi payment is 1358.00 dollars and is my only income and being a single male will not be taxed at all thank you

I am 66 and half in full retirment age and working full time. How much is my tax to social security? Have no any other income such as pension or 401 k.

Very good information! Thank you

How do you get the numbers @ 4:17? Looks like AGI is $89,890, - $25,900 (std deduction) = $63,990 taxable income. Total tax = $7,266. (using 2022 1040). What am I missing??

I am an expat living in Thailand 🇹🇭. I’m running into all kinds of trouble trying to get ready to file soon. I was told I had to fly to Manila Philippines 🇵🇭 to try and file there. I am on a tight budget and this would cost a lot. Any help or advice would be appreciated. I turn 62 in June.

My understanding, if you live outside the US for 363 days in a year, you don't have to pay income tax. Belize and Costa Rica are on my retirement radar because they don't make you pay taxes if you retire there and your retirement income is from another country.

Super helpful, wow, thank you!!

That money was already taxed. Now it's robbery.

My wife makes over 200k per year and she’s 9 years younger than me but I want to retire at 62 and take socail security to do so. Are they gonna tax my socail security?im in California and my wife is gonna continue to work.

Great video!

2023 was my first year living on a half pension, my ex gets the other half, and SS taken at 62. Single, I have no other incomes or savings. My 50% pension and SS taken at 62 has a combined gross income of $48,142.20; my provisional = 34,861. So my SS will be taxed at 85%? They suck! It is sad, they just want to keep control of the middle class.

in example #5...gross annual income should be $6261/month x 12 = $75132...correct?

Some of these people are bringing in $6000 in SS and STILL will be taking out $7,000 per month from their IRAs. I couldn't spend that much in a month short of fixing up my home even if I tried.

Under Example #4...What If the person working is paying normal payroll taxes throughout the year. Is there something extra they have to pay?

Hello, quick question, I am a 62 yo retired Federal employee. I get a monthly annuity and have Federal tax taken out of that. My wife still works and has Federal tax (10%) taken out each paycheck. This past year we got a Federal tax refund of over $2k. Since I turned 62 two months ago, my SSA Supplement ended. Starting this month I will begin receiving my Social Security benefit payment which works out to be about $700 more than my SSA supplement was per month. My question is, since my wife and I received a good amount from last years Federal tax return, am I required regardless to have additional Federal tax taken out of my Social Security benefit even if I think we are paying adequate Federal Taxes on our income? Thank you.

I’m supposed to be getting 1572 a month from Social Security have no income except I do side jobs and claimed about $14,000 income from that Social Security can answer this but what am I going to be taxed? Thank you.

I am very much a beginner in investing. In your book, I would like to know the TOC before I buy it.

I am 100% disabled from a head injury in 1994,why do I have to pay taxes on this at end of year,I don’t understand.

What if I decided to go back to work because prices are so high? I received my SS at age 62 but am now 68. I know I would pay tax on my work but I believe I would not be taxed on my SS correct? Why do they tax us on SS when it is money we already paid while we were working? Thank you.

what does "Provisional" mean?

Lane, a few points of confusion for me. At about 8'45", you show the SS Tax Thresholds. I'm single. Are these thresholds representing all income or just SS benefit income? Do I add my pension and SS benefit, multiply by 12, or do I multiply just my SS benefit by 12? If my SS benefit taken at 62 was $1,925.20, that would be $23,102.40/year, so below the threshold. But, adding my projected pension benefit of $3,798.02/month, the two together would come to $5,723.22/month, so $68,678.64/year. By one way, I would pay no SS tax, but by the other, 85%. I'm still confused as to how the provisional tax and then the ultimate SS tax is calculated. I couldn't figure out a consistent pattern between these examples, and so still haven't been able to figure out what my annual tax would be even if I assumed I would pay the 85% rate. I think I look pretty similar to the single AZ adult, though my SS benefit is quite a bit lower and my other income is a pension, not a 401k. So, just to summarize, per month ... SS benefit: $1,925.20 Pension: $3,798.02 Single, age 62. Thanks for any clarification you can provide. I appreciate these videos. I've been learning a lot, Alex

Wait...for the Idaho couple first example they had $2000/month in pension income. In your second example for that couple you left out the pension income. Need to show that example with the pension income included. I realize that they'll still pay less tax since they're using Roth for living expenses, but the comparison needs to be apples to apples with their pension income.

Omg Question live in. GA will received my ssn in oct single working for 90,000. Per year my expected amount to received will be $2400,09 How much tax will I be paying back?

what if one spouse is retired and the other isn't. the retired spouse is working but under the income threshold while the other is not. Should the ret. spouse file tax separate ?

Thank so much sir.🎉

What is "provisional income?"

So I only pay tax on the portion of my assets i liquidate in the tax year and my tax rate has nothing to do with my total net worth?

Is social security still taxes as much if you use it to pay medical insurance if you are not old enough to qualify for Medicare?

I presume unearned income like interest from a money market account to be the same for the provisional amount ?

Thanks for great information. I am 65 and my wife is 64. By end of the year I am going to collect my ssi and retire from my job with a pension my ssi would be around $1600+$500 for my wife and $1500 pension. How do I calculate if I have to pay taxes? I live on Georgia. Thanks as always. Yours,

Thanks for posting this excellent video. I have one question regarding how much tax will actually need to be paid. In Example 7, $25,963 are due. However, in the case of a married couple, would this be covered by the standard deduction anyway, so no taxes would actually need to be paid? Or, am I not understanding the process. Thank you.

In the Arkansas example you forgot the standard deduction.

What if one spouse is strictly civil service retirement and one is minimum social security benefit?

You only did one scenario on singles and the rest for married can you do more on the singles please!

I am a house wife for now because I have to take care of my illness husband. And I was working from 2000 to July 30 2022. I will be 60 years old in October 10 2023. Right now I can't go back to work anymore because I have to take care of my illness husband. Am I Aligibal for the binifit of social security money. And when I can apply for it .thank you very much. Please give me an answer.

Question: Do the taxes get removed when the checks come out or do we need to save for these taxes and pay with our income tax?

I'm close to FRA and I have a 401k at my job, what if I took a lump sum on the 401k before I retire, could I be tax free then?

Do people with decent pensions have any way to reduce the percentage of SS benefits being taxed to below 85 percent?

Don’t wait til you retire to try to redistribute from trad to Roth. Do it while you still have an income stream. Otherwise you are paying the taxes from your nest egg. Roth it all the way so you won’t get to RMD time and be paying taxes from your retirement accounts.

How do you figure the provisional income? what a bad deal.

Is it the same for SSDI?

I wish they wouldn't tax the very little bit of money i earn part time bc i dont make enough to file so they get to keep everything they withhold i also get ssi

What about a single that has retirement and social security at 67

Why do t people understand you’re not supposed t9 live off social security? It’s a supplement

Thank you

Subtitle C social security taxes according to the US Treasury Secretary is triggered upon a "privilege" or in layman's terms an excise tax, which the average American making domestic source income does not qualify.

Do you have calculator to calculate these pensions?

Social security benefits maybe shouldn’t be taxed at all, because it was taxed, also paid ahead for those benefits for certain amount for decades long. Also if hardworking Americans love to work after retiring age will be discouraged. Moreover, if hardworking Americans’ social security benefits can’t be enjoyed, but paying never paid taxes and never worked for building our country America’s greatness and illegally across the borders and getting paid all of Americans’ benefits, surely many Americans will be sad and unhappy by talking much of this issue. Maybe help some American homeless, or disabled veterans and injured policemen, also using some money to help Americans to get rid of the drug addictions, training working skills, or single parents, or orphans for appropriate growing and stable life. If Americans’ own harder life or situations can’t be taken care of, then the whole world will wonder why or how. Also too many homeless tents and dirty garbages around everywhere, it will damage America’s greatness images quickly. 45 years ago, I came to America, clean, organized and courteous Americans are very friendly toward each other. Also plenty of jobs for hardworking Americans to live in stable life by freedoms and equality of opportunities principles and societies. Less or rarely to see looting, robberies or murdering crimes openly to force major Department stores to shut down or close. Hotels or motels were open normally for booming economy growing atmosphere or for booming tourism activities. I guess the stable jobs made Americans happier and stronger patriotism spirit for America’s flags. Also strong economy supported strong defense capabilities to show America’s greatness, strength and Americans’ happiness altogether as the world leadership status efforts for peace efforts toward peace in the world. American dreams were spreading out as proud to be Americans. America 🇺🇸 was so united together by building our country America’s greatness together and preserving freedoms, entrepreneurship spirit and equality of opportunities principles to ensure America’s greatness by America’s recognitions and principles. Kindness nature are very much promoted by Christianity spirit influences as Americans together to love our country together always. We could achieve in the past, we can achieve now and in the future together again. America is America, but America’s greatness and strength will boom entire world’s economy growing. America’s high tech support will make peace efforts, more entrepreneurship spirit encouragement, America’s kindness nature will help achieve all to live better by efforts, correct motivations of freedoms, entrepreneurship spirit and equality of opportunities, also the longevity of the earth through America’s principles, patriotism spirit, efforts by greatness, strength and happiness and kindness altogether. This is why we must focus on America’s principles, getting things done quickly together, efforts without hesitation, power of alliances, communication abilities accompanied with strategies as America’s experiences for getting things done quickly together and govern bylaws afterwards together quickly to preserve freedoms, entrepreneurship spirit and equality of the opportunities together by loving our country America dearly together.

But whether you take money out of your 401 or convert it to a Roth - you still pay taxes. So I fail to see how converting is “better?”

What is provisional income?

At 8:17 where did the pension item go?

Why is it a different % of provisional income for each person? It looks like the taxes are set to keep us in poverty level forever.

PLEASE explain how you came to the 28% and 19% conclusions.

The problem with all this is most Americans have never read any of the tax code. Indeed, most probably dont know which title in the usc is the tax code. Simce this is true, there has arisen a sort of priestly ckass, so called tax professionals and accountants and preparers, etc. These people while filling a niche demand that may help some people are still essentially grifters off the vast majority of working Americans. The FIT is an excise tax, always has been since it inception in 1862. Surprised?!? Bet you thought the tax started in 1914 with the 16thA. The were a series of SCOTUS rulings, Brushaber, Stanton Mining, etc, that clearly show that the FIT is an excise tax and the 16thA does not alter the comstitutional proscription on a capitation tax on individuals. See Article 1, secrion 2, clause 3, and Article 1, section 9, clause 4. When American workers fill out and sign a w4, they are allowing their payer, the compqny or individual they wirk for, to withhold taxes and report their earnings as "wages", i.e , federal "income" which is taxable under 26usc. See how that works? The federal govt uses private sector businesses to basically trick people into identifying their non-taxable earnings, which arent taxable, as "wages" which are taxable. This is also known as constructional fraud, but dont hold you breath for the AG to do anything about it All this fraud can be traved back historically to WWII and the Victory Tax. Prior to WWII, people knew the true nature of the tax laws and very few actually filed returns. All this is proveable and available for people to read and apprehend if so inclined. It will blow your mind. Cheers

I don't understand why am I being taxed on SS when I was not given the option of putting that monies in the stock market so I could have had a lot more money...if you made me pay into SS from my pay, then I SHOULD NOT have to pay any taxes

What about state tax on SS income?

No one should be paying damn taxes if they are retired and paying taxes after like 30 years. Absolutely GARBAGE 0:47

i don't know anyone with that much SS.

So depending were you live will very in taxes.

SSI funds were already taxed while we were working - let's stop this $$$ grab NOW

Not sure what Provision income means in these scenarios.

i recive ss $2,571.00 l am 66 and still working my anual job in a year is $69,000.00 my wife does not work she gets $932.00 she is 63 i am in my job on my w-4 am single and put an extra $100.00 per pay period how would my situation work thank you

SS benefit 1 + SS benefit 2 + pension = 75,132, where do you get 71,400?

What is the name of your book?

Could you mail me the forms to enable me to recieve ssi i dont want to put my info on the internet ive subscribed and have been watch your videos they have cleared things up for me and i thank you very much

what are the thresholds? what about deductions? You explanation is useless without those numbers?

Wait, how does the wife have that much benefit? Max she should get is half of his?

Omg

Great video!