What, if any, would be my tax liability for the following situation?
I am 62 and am collecting social security for the first time and also working a part-time job that pays 18K gross a year.
What would be the tax implications on my federal and state forms (Illinois)?
Thanks a million!
- RICKLv 71 month agoFavorite Answer
There is a worksheet, if single part of your SS benefits will be taxable.
- NALv 71 month ago
Don't tell us, but what is your SSA benefit?
Let's say you are getting $20,000 in SSA benefits and $18,000 from wages (and no other income). The first test is to add 1/2 of the SSA benefits to your income. That would add up to $28,000, which is more than $25,000, so some of the SSA benefits are taxable. There are calculators on the web that suggest $1500 of the $20,000 would be added to your income tax calculation.
So...1040 will have gross income of $19,500, deduction of $12,400 for 2020, leaving taxable income of $7,100. Tax on that for a single person would be $710 (10%).
- JudithLv 71 month ago
In regards to the federal return - you would have to file one. If you are single and your SS benefit + your wages = $25K or more then you will have to pay income taxes on a portion of your SS benefit. If married then $32K or more.
Don't know about your state return.
- SlickterpLv 71 month ago
If single, then you are taxed on the income about $12000 federally, and a portion of the SS may become taxable.
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- JudyLv 71 month ago
fed - you must file. Might or might not owe tax on any of the ss.
state depends on where you live.
- Anonymous1 month ago
Tax implication on your forms in what way? I have no clue what you are asking.
Your earned income and your social security income are both taxable if that is what you are trying to ask.