SS Adjusted Gross Income and More . . . (55, pension, social security, federal)

[oldSarge98]

Attempting to determine taxes on retirement income I have not been able to answer some questions. Our retirement income will consist of US Army retirement pay, Social Security (my primary and wife's spousal benefit) and a modest (>200K) 401K.

1. I am trying to determine what goes into determininig "Adjusted Gross Income" but don't find anything concrete. Is my Army retirement check considered "income"? Are 401K distributions considered "income"?
2. When taxes are levied what kind of taxes? I know that Georgia will not tax the Social Security and the rest is going to be low enough to stay under state tax limits too but when the fed takes its piece is it only income tax or do they still take Fed MED/EE (Medicare) and Fed OSDI/EE (Social Security) even though you're paying for Medicare and receiving Social Security?

Thanks in advance.

[jrkliny]

Once you stop working, you will not have deductions for social security or medicare. Your military pension and 401K distributions are 100% taxable for Federal income taxes. There is a sliding scale for taxes on social security. Most individuals and couples are taxed on 85% of the annual amount. Everyone gets a 15% exemption.

[Blondy]

https://www.irs.gov/uac/newsroom/soc...and-your-taxes

Have you looked at this link from irs.gov?

Your Army retirement and 401K distributions are taxable income at the federal level. Federal income tax only.....nothing else.

[reed303]

Originally Posted by oldSarge98

Attempting to determine taxes on retirement income I have not been able to answer some questions. Our retirement income will consist of US Army retirement pay, Social Security (my primary and wife's spousal benefit) and a modest (>200K) 401K.

1. I am trying to determine what goes into determininig "Adjusted Gross Income" but don't find anything concrete. Is my Army retirement check considered "income"? Are 401K distributions considered "income"?
2. When taxes are levied what kind of taxes? I know that Georgia will not tax the Social Security and the rest is going to be low enough to stay under state tax limits too but when the fed takes its piece is it only income tax or do they still take Fed MED/EE (Medicare) and Fed OSDI/EE (Social Security) even though you're paying for Medicare and receiving Social Security?

Thanks in advance.

1. Yes, and yes

2. Social Security and Medicare (FICA) payroll taxes are only applied to wages/salaries.

See more detail re your retiree questions at https://www.irs.gov/pub/irs-pdf/p4190.pdf

[Nightengale212]

Originally Posted by oldSarge98

Attempting to determine taxes on retirement income I have not been able to answer some questions. Our retirement income will consist of US Army retirement pay, Social Security (my primary and wife's spousal benefit) and a modest (>200K) 401K.

1. I am trying to determine what goes into determininig "Adjusted Gross Income" but don't find anything concrete. Is my Army retirement check considered "income"? Are 401K distributions considered "income"?
2. When taxes are levied what kind of taxes? I know that Georgia will not tax the Social Security and the rest is going to be low enough to stay under state tax limits too but when the fed takes its piece is it only income tax or do they still take Fed MED/EE (Medicare) and Fed OSDI/EE (Social Security) even though you're paying for Medicare and receiving Social Security?

Thanks in advance.

I found a pretty good retirement tax calculator at http://smartasset.com/retirement/retirement-taxes
that will give you an idea of what your Federal and State taxes will be in retirement.

[brava4]

Originally Posted by Nightengale212

I found a pretty good retirement tax calculator at http://smartasset.com/retirement/retirement-taxes
that will give you an idea of what your Federal and State taxes will be in retirement.

Great calculator. Thanks!

[reneeh63]

Originally Posted by Nightengale212

I found a pretty good retirement tax calculator at http://smartasset.com/retirement/retirement-taxes
that will give you an idea of what your Federal and State taxes will be in retirement.

Thanks - great website!