Social Security taxation confusion - do I still pay Medicare/SS taxes after retirement?

No, you don't pay Social Security and Medicare taxes (FICA taxes) on your Social Security benefits. Those taxes only apply to earned income - wages or self-employment income. The only deductions from your Social Security check will be: 1. Medicare Part B premiums (and Part D if you choose to have that deducted) 2. Federal income tax withholding (if you request it using form W-4V) 3. Any Medicare Income-Related Monthly Adjustment Amount (IRMAA) if your income is above certain thresholds Your benefits may be subject to federal income tax depending on your combined income, but that's handled through your annual tax return, not as FICA taxes.

congrats on hitting ur FRA! im still 8 yrs away lol. my dad said same thing when he started gettin his checks - no more fica taxes on SS benefits. but watch out cuz u might still owe fed income tax if ur total income is high enough. think its like if u make over 25k single or 32k married they start taxin between 50-85% of ur benefits. my dad was surprised by that!

You've gotten good answers already about FICA taxes not applying to your benefits. However, it's worth mentioning that if you continue to work while receiving benefits (even part-time), any earned income from that work will still be subject to Social Security and Medicare taxes, even though your benefit payments aren't. Also, your pension will not have FICA taxes withheld either. Pensions are considered unearned income, just like your Social Security benefits. If you're concerned about managing all these different tax situations, I'd recommend speaking directly with a Social Security representative to review your specific situation and withholding options.

When I started collecting last year I was shocked at how much less I got than expected because of all the deductions! The Medicare part B premium took a big chunk, and since I'm still working part-time I had them withhold federal taxes too. But your actual check will DEFINITELY not have Social Security or Medicare taxes taken out like a paycheck does - that would be paying twice!

Just to clarify what others have shared - here's a simple breakdown: - Social Security benefits: No FICA taxes (Social Security and Medicare taxes), but potentially subject to federal income tax - Pension income: No FICA taxes, but subject to federal income tax - Continued employment income: Still subject to both FICA taxes and income tax For your federal income tax withholding on your Social Security benefits, you can request withholding at 7%, 10%, 12%, or 22% using Form W-4V. There are no other percentage options available.

Congratulations on reaching your FRA! As others have confirmed, you're absolutely right - no FICA taxes on your Social Security benefits. Just wanted to add that if you're still unsure about your withholding amount, you can always change it later using Form W-4V. Many people start conservative with 10% withholding and then adjust based on their first year's tax situation. Also, don't forget to factor in any state taxes if you live in one of the states that taxes Social Security benefits (there are 12 of them). The transition from paycheck to benefits can feel overwhelming with all the tax changes, but you've got this!