Will I pay taxes on my SS spousal benefits with income under $25k? COLA questions too
Just got approved for my Social Security spousal benefits starting next month! Excited but confused about a few things the SSA pamphlets dont explain clearly: 1. TAXES: I'm retired, divorced, and my annual income is around $22,800. Will I have to pay taxes on these spousal benefits? I think the threshold is $25,000 for single filers but want to be sure. 2. COLA ADJUSTMENTS: How does the Cost of Living Adjustment work? Is it automatic or do I need to apply for it? And roughly what percentage increase should I expect for 2025? 3. MEDICARE DEDUCTIONS: Will my Medicare premium ($174.70/month) be automatically deducted from my SS benefit check, or do I need to set that up separately? 4. OTHER DEDUCTIONS: Are there any other surprise deductions I should be expecting that might reduce my benefit amount? I've called the SSA office 5 times and gotten different answers each time! Hoping someone here has actual experience with this. Thanks!
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Aiden O'Connor
Congrats on getting approved! I can help clarify some things: 1. TAXES: The $25,000 threshold for singles is correct, but that's for your "combined income" (adjusted gross income + nontaxable interest + half of your SS benefits). So if your $22,800 is just your non-SS income, you might still exceed the threshold once you add half your SS benefits. Calculate carefully. 2. COLA: The annual COLA is automatic - no need to apply. For 2025, experts are projecting around 2.5-3%, but that won't be officially announced until October 2024. 3. MEDICARE: Yes, if you're already enrolled in Medicare, the premium will be automatically deducted from your SS payment. 4. OTHER DEDUCTIONS: If you owe back taxes, federal student loans, or child support, those could be garnished. Also, if your income is high enough, you might pay IRMAA (higher Medicare premiums).
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Sofía Rodríguez
•Thank you for this info! That combined income calculation threw me - I didn't realize they count half my SS benefits toward the $25k threshold. My spousal benefit will be $1,450/month, so that's... $8,700 annually that counts toward the threshold? So my total "combined income" would be around $31,500? Ugh, looks like I'll owe taxes after all. 😞
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Zoe Papadopoulos
Just wanted to add that you might want to consider having federal taxes withheld from your SS check if you're going to be over the threshold. You can file Form W-4V for voluntary withholding and choose 7%, 10%, 12% or 22% withheld. Saved me from a surprise tax bill last year!
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Jamal Brown
•i did the withholding thing and it was way easier than paying quarterly. just remember you can only choose from those specific percentages tho, not any random amount u want
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Fatima Al-Rashid
The SSA phone lines are TERRIBLE!! I spent 3 hours on hold last month trying to fix a payment issue and then got disconnected. After 5 more attempts, I found this service called Claimyr (claimyr.com) that got me connected to an actual SSA agent in under 10 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU It was seriously worth it to avoid the hold times. The agent I spoke with confirmed everything about the COLA being automatic and Medicare deductions, plus gave me specific dates when my first payment would arrive.
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Giovanni Rossi
•does this Claimyr thing actually work? seems too good to be true after i've wasted literally DAYS on hold with SS...
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Fatima Al-Rashid
•It worked for me! My neighbor recommended it after my frustrating attempts. The SSA agent I got was really knowledgeable too - answered all my questions about my widow's benefits clearly.
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Aaliyah Jackson
YOUR GONNA PAY TAXES!! sorry to yell but the SSA ALWAYS misleads people about this. the $25k threshold is A TRAP because they count half ur benefits in that calculation!! ive been paying taxes on my SS for 3 years even though my pension is only $21k. its HIGHWAY ROBBERY if u ask me!!!!
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Aiden O'Connor
•While the threshold calculation is frustrating, it's actually written into the tax code, not something SSA created. Up to 85% of benefits can be taxable depending on your combined income. It's complicated, but not deceptive - just poorly explained in many cases.
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KylieRose
Regarding COLA - the 2.5-3% estimate for 2025 is reasonable based on current inflation trends, but remember it's calculated based on the CPI-W from Q3 of the previous year. The official announcement comes in October and is applied to your January payment. One thing nobody mentioned: COLA affects not just your benefit amount but also tax thresholds for Social Security. The $25,000 threshold unfortunately hasn't been adjusted for inflation since it was established in 1984, but some other Social Security income thresholds do increase with COLA.
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Sofía Rodríguez
•Oh, I didn't know that about the $25k threshold never being adjusted since 1984! That seems really unfair. Wouldn't that threshold be like $70k+ if it had kept up with inflation? No wonder so many seniors end up paying taxes on their benefits...
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Giovanni Rossi
my mom gets spousal benefits too and she said make sure ur ex didn't remarry before you turned 60 or it affects eligibility or something??? also watch out for the earnings limit if ur under FRA and still working part time
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Sofía Rodríguez
•Thanks for the concern! I'm actually receiving spousal benefits based on my current spouse's record (should have been clearer in my post). I'm fully retired and well over FRA - I'm 69. But that's good info for others reading this thread who might be in different situations.
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Jamal Brown
wait im confused... you said your single but getting spousal benefits? did you mean survivor benefits? or are you divorced? those are different things with ss
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Sofía Rodríguez
•Sorry for the confusion! I'm divorced but receiving spousal benefits based on my ex-husband's record (we were married 22 years). SSA still calls them "spousal benefits" even though we're no longer married. I should have been clearer!
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Aiden O'Connor
•Just to clarify for everyone: You can receive divorced spouse benefits if you were married for at least 10 years, are currently unmarried, and your ex-spouse is entitled to benefits. These are officially called "divorced spouse benefits" but many people (and even some SSA reps) casually refer to them as spousal benefits.
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KylieRose
One additional consideration regarding your Medicare premium: The $174.70 you mentioned is the standard Part B premium for 2024. However, if your modified adjusted gross income from 2023 (as reported on your tax return) was above certain thresholds, you might be subject to IRMAA (Income-Related Monthly Adjustment Amount), which would increase your premium. Based on the income you mentioned, you're likely below those thresholds, but it's something to be aware of if your income fluctuates year to year.
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Sofía Rodríguez
•Thank you! My income has been pretty steady around $22-23k for the past few years, so I should be well below the IRMAA threshold. One less thing to worry about!
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