What is the name of your state?California
I am starting to collect social security for the first time starting next month and would like to see if I understand how taxes work.
Hypothetical example:
Married male earns $30.000 in social security in 2019 and has no other income.
Wife still working earns $80,000 in 2019.
Here is my understanding. Someone please either confirm or explain if I am not understanding correctly.
85% of the $30,000 SS benefits will be taxed. This comes to $25,500 that will be subject to tax.
$25,500 (taxable portion of the SS) plus $80,000 (wife's salary) brings the couple to $105,500, which after standard deduction for a married couple equals $81,100.
Conclusion: The tax rate would be 12% for the first $78,000 and 22% for the remaining $3,100.
Am I correct or am I calculating something wrong?
Thanks so much for any help anyone can provide.
I am starting to collect social security for the first time starting next month and would like to see if I understand how taxes work.
Hypothetical example:
Married male earns $30.000 in social security in 2019 and has no other income.
Wife still working earns $80,000 in 2019.
Here is my understanding. Someone please either confirm or explain if I am not understanding correctly.
85% of the $30,000 SS benefits will be taxed. This comes to $25,500 that will be subject to tax.
$25,500 (taxable portion of the SS) plus $80,000 (wife's salary) brings the couple to $105,500, which after standard deduction for a married couple equals $81,100.
Conclusion: The tax rate would be 12% for the first $78,000 and 22% for the remaining $3,100.
Am I correct or am I calculating something wrong?
Thanks so much for any help anyone can provide.