Howell & Associates Advanced Planning - Green Bay, Wisconsin

Benefits May Be Taxable

Some people who get Social Security will have to pay taxes on their benefits. About 40 percent of our current beneficiaries pay taxes on their benefits. You’ll have to pay taxes on your benefits if you file a federal tax return as an “individual” and your total income is more than $25,000. If you file a joint return, you’ll have to pay taxes if you and your spouse have a total income that is more than $32,000. For more information, call the Internal Revenue Service’s toll-free number, 1-800-829-3676.

What You Need To KNow

Social Security benefits only replace some of your earnings when you retire, become disabled, or die. We base your benefit payment on how much you earned during your working career. Higher lifetime earnings result in higher benefits. If there were some years when you didn’t work, or had low earnings, your benefit amount may be lower than if you worked steadily.

Retirement benefits

Choosing when to retire is one of the most important decisions you’ll make in your lifetime. If you choose to retire when you reach your full retirement age, you’ll receive your full benefit amount. We will reduce your benefit amount if you retire before reaching full retirement age.

Full Retirement Age

If you were born from 1943 to 1960, the age at which full retirement benefits are payable increases gradually to age 67. If your birth year is 1948 or earlier, you already are eligible for your full Social Security benefit.