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Posted by Mark Bole on November 25, 2007, 7:36 pm
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Howard Kaikow wrote:
> Over the past few years, I have noticed articles in magazines/newspapers
> that stated that social security benefits are not taxed, if you make
> additional income, AFTER reaching the FULL retirement age.
>
> Looking at the September 2007 version of IRS Notice 703, I see no such
> exemption.
>
> What's the truth?
It's two different rules, one for taxation of benefits and one for
reduction of benefits (although the end result may look the same to the
recipient of benefits).
IRS only deals with taxation of benefits, which depends solely on your
unadjusted taxable income (before deductions and exemptions) and your
tax-exempt interest. Your normal retirement age is irrelevant.
At the SSA web page link shown here:
http://www.socialsecurity.gov/OACT/COLA/rtea.html
you can read about the reduction in benefits prior to reaching normal
retirement age.
-Mark Bole
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