Social Security and 2024 taxes - do I include Jan-May wages if I started SS at FRA in June?

Yes, you absolutely have to include ALL wages earned during 2024 when calculating whether your Social Security benefits are taxable. The IRS looks at your total income for the year, regardless of when you started collecting benefits. The key formula is looking at your 'combined income' (adjusted gross income + nontaxable interest + 1/2 of your Social Security benefits). If that exceeds $25,000 for singles or $32,000 for married filing jointly, some portion of your benefits becomes taxable. Those Jan-May wages count toward your AGI for the entire tax year.

my brother had similar situation last year and yes ALL wages count. he was really surprised when tax time came!!! make sure u put aside some $$ for taxes if ur total income is over the limits the other person mentioned.

The advice given is correct - all wages earned during the tax year count toward determining the taxability of your Social Security benefits. However, don't panic yet. You should calculate your potential tax liability by estimating your combined income. If your Jan-May earnings plus half your June-Dec Social Security benefits (plus any other income) falls below the thresholds mentioned ($25,000 single/$32,000 married), you might not owe taxes on your benefits. Even if you exceed the threshold, only a portion of your benefits would be taxable, not the entire amount. I'd recommend using the IRS's worksheet in Publication 915 to get a preliminary estimate.

DONT FORGET OTHER INCOME TOO!! My sister got hit with unexpected taxes because she forgot to count INTEREST from her savings accounts and a small dividend payment from stocks!!! The IRS counts EVERYTHING when figuring out if your SS gets taxed!!

Just to add some clarity here - when it comes to Social Security benefits and taxation, there's an important distinction between the earnings test (which doesn't apply to you since you're at FRA) and the taxation of benefits (which is what you're asking about). For taxation purposes: - If your combined income is between $25,000-$34,000 (single), up to 50% of benefits may be taxable - If combined income exceeds $34,000 (single), up to 85% of benefits may be taxable - For married filing jointly, those thresholds are $32,000-$44,000 and over $44,000 And yes, your January-May wages count toward that calculation, unfortunately. You might want to consider making an estimated tax payment if you think you'll owe.

I had the exact same question last year! Called SSA multiple times and kept getting disconnected or told different things by different agents. Finally used Claimyr (claimyr.com) to get through to someone who actually knew what they were talking about. Saved me hours of frustration with the phone system. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU And yeah, like others said, all your 2024 income counts regardless of when you started benefits. But the SSA rep explained exactly how to estimate the taxable portion which was super helpful.

my aunt said u should also look at state taxes cuz some states tax SS and some dont!!! depends where u live

One strategy to consider for future years (won't help for 2024): if you have the ability to control income sources, you might be able to stay below the taxation thresholds. For example, taking distributions from Roth accounts (which aren't counted in the combined income formula) rather than traditional IRAs, or timing certain investment decisions. This requires advance planning but can reduce the tax impact on your Social Security benefits.