Taxes on Social security

[FREE866]

https://www.irscalculators.com/tax-calculator




Plugging in numbers on this calculator and just want to make sure I'm reading this right.



New York resident.

If a single filer over 65 has $50,000 in social security and $10,000 from ordinary dividends the total tax bill will be only $80!?!?!

 

[Exchme]

Federal taxes would be zero (there's only a couple hundred $ room left in the 0% bracket), don't know about New York.

 

[FREE866]

Federal taxes would be zero (there's only a couple hundred $ room left in the 0% bracket), don't know about New York.

In the calculator there is a drop down for state and when I select NY it indicates total tax bill of $80 on total income of $60,000
This can't be right

 

[SevenUp]

In the calculator there is a drop down for state and when I select NY it indicates total tax bill of $80 on total income of $60,000
This can't be right

That's the same answer the case study spreadsheet gets.

You could look at that one as well.

 

[RunningBum]

In the calculator there is a drop down for state and when I select NY it indicates total tax bill of $80 on total income of $60,000
This can't be right

Look more closely at all the tool shows you. Under where you entered your SS income, it shows you that only $5350 of it is taxed. Add your $10K of dividends and it is canceled out by the standard deduction for single over 65. So, yes, it is correct.

 

[FREE866]

This is phenomenal news!


Thx guys!

 

[jebmke]

Lot of states don't tax SS. I think in MD, the case you describe would not even have to file -- zero tax. The filing threshold for a Single filer is ~ $13K excluding SS.

 

[FREE866]

Lot of states don't tax SS. I think in MD, the case you describe would not even have to file -- zero tax. The filing threshold for a Single filer is ~ $13K excluding SS.

I totally knew NY and I think most states now do not tax SS, but just putting actual numbers in I was like wow!

 

[pb4uski]

Remember that the next time someone complains about taxes being top high or that SS is taxed.

 

[Markola]

SS is taxed in MN but changes are likely this session that will make it so that only around the top 25% income recipients pay it.

 

[Gumby]

Remember that the next time someone complains about taxes being top high or that SS is taxed.

85% of my social security is taxed. But I would rather have the income necessary for that to be the case than not have it.

 

[scrabbler1]

I live in NY and have a spreadsheet which mimics the tax calculations. I set one up for my 92-year-old dad whose taxes I do. RunningBum described how your fed tax bill would be zero. Your state taxable income would be $2k based on the $10k AGI in dividends (only) minus the $8k standard deduction. Your state taxes due will be $81.

 

[jim584672]

NY also has a $20,000 pension / retirement account withdrawal exclusion over age 59.5, Social Security is tax free.