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

  • 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.

  • What do you think of the answers? You can sign in to give your opinion on the answer.
  • 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. 

Still have questions? Get answers by asking now.