Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Capital gains effect on taxable Social Sec.
Old 02-26-2017, 07:53 AM   #1
Recycles dryer sheets
Join Date: Sep 2013
Posts: 86
Capital gains effect on taxable Social Sec.

I keep a spreadsheet for income tax planning and am having trouble getting one thing straight.

Example: Taxpayer, married filing jointly, has 30k in income from retirement plan distributions, interest, and dividends. Plus 25k in social security. About 4k of the social security is taxable.

If taxpayer realizes a 20k capital gain it is taxed at 0% as they are below the ceiling of the 15% tax bracket.

Question: will realizing the gain increase the amount of the social security benefit subject to taxation?

upset264 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-26-2017, 08:50 AM   #2
Thinks s/he gets paid by the post
Join Date: Jan 2006
Posts: 3,804

yes. You could program the wksht into your spreadsheet.

kaneohe is online now   Reply With Quote
Old 02-26-2017, 08:57 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 22,950
Yes, because SS taxation is subject to your MAGI - modified adjusted gross income that includes your AGI as well as otherwise tax exempt income such as muni bond income.

The fact that your LT cap gains income is tax free under your scenario has no bearing.
Retired since summer 1999.
audreyh1 is offline   Reply With Quote
Old 02-26-2017, 08:59 AM   #4
Full time employment: Posting here.
Join Date: Nov 2009
Posts: 560
Face this myself, but manipulating income for ACA subsidy which (for now) saves us from taxes on SS income. The tax man is patient though...

Investment income will increase your adjusted gross income (AGI), which can make more of your SS benefit taxable, resulting in less after-tax SS benefits.

This link gives a good explanation.
Believe me, my young friend, there is nothing - absolutely nothing - half so much worth doing as simply messing about in boats. Kenneth Grahame, The Wind in the Willows
fritz is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Social Sec. File and suspend is gonna end. gcgang FIRE and Money 24 11-06-2015 10:01 AM
Capital gains and dividend distributions from taxable account trustee FIRE and Money 9 12-19-2013 07:10 PM
Do you receive Social Sec. from another country? itsmyparty FIRE and Money 7 04-18-2008 11:48 PM
social sec question albundyz FIRE and Money 27 12-07-2006 01:48 PM

» Quick Links

All times are GMT -6. The time now is 12:54 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.