Anonymous
Anonymous asked in Business & FinanceTaxesUnited States · 1 month ago

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!

6 Answers

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  • RICK
    Lv 7
    1 month ago
    Favourite answer

    There is a worksheet, if single part of your SS benefits will be taxable.

  • NA
    Lv 7
    1 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%).

  • Judith
    Lv 7
    1 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.

  • 1 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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  • Judy
    Lv 7
    1 month ago

    fed  - you must file.  Might or might not owe tax on any of the ss.

    state depends on where you live.

  • Anonymous
    1 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. 

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