Ask Experts Questions for FREE Help !
Ask
    engineer1's Avatar
    engineer1 Posts: 4, Reputation: 1
    New Member
     
    #1

    Sep 27, 2009, 06:11 PM
    Pension /social security taxes
    I am 56 years old. I plan on retiring at 60 from lockheed martin. Do I have to pay any taxes on my pension amount?

    Do I pay 85% on SS amounts in excess of $44,000 (married,file jointly)?

    Thanks for your help.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
     
    #2

    Sep 28, 2009, 08:03 AM

    Pensions are typically taxable for federal tax purposes, unless you made after-tax contributions to your pension plan - in this case then the portion of your pension that consists of return of your after-tax contribution is non-taxable. But if your employer contributed all of the cost without including the cost in your taxable income then it is fully taxable.

    And yes - if your joint income from sources other than SS plus 1/2 of your SS income is above $44K, then 85% of your SS benefits are taxable.

    Whether any or all of your pension is taxable for state income tax purposes depends on what state you live in.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Social Security Widows Pension [ 7 Answers ]

If you remarry can you still collect your Social Security Widows pension?

Protecting Social Security and Pension when in debt [ 2 Answers ]

My husband and I are losing our home due to illness. He is 62 and receiving SSD benefits and I am 60 and receive a pension. This is the only income we have. I am currently working with creditors (owing 25K)to work out a payment plan however if they get a judgement against us can they attach his...

How to Claim Social Security taxes & medicare taxes [ 1 Answers ]

Hello, I worked on my CPT and OPT from July 2006 to June 2008 and paid Social Security taxes & medicare taxes, how can I claim them back? Thank you.

OPT social security taxes [ 3 Answers ]

Dear Experts! I guess this is one of the streotype questions that arise over and over again, But I can not find an answer. Please help me. I came to US as a F-1 student in July, 2002, and finished my degree in Aug, 2007. Now I am working, but still in F-1 status with OPT, starting Sep, 2007...

NJ SDI, SUI, Social Security taxes [ 2 Answers ]

For the first time, I will be working as an independent contractor as opposed to an employee. I will live and work in New Jersey. Besides federal and state income taxes, what other taxes will I have to pay and how do I determine the amount, to whom, and when I pay them? I understand I may have...


View more questions Search