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Post by JesusNinja on Oct 20, 2021 7:39:37 GMT
I know it's been awhile since I've logged in and commented on anything. But I've retired and also all of my books. Mainly for tax reasons. I do miss writing and everyone I've met from Lulu so much. I just wanted to say hi to everyone and I hope everyone is well. Those that have my email address feel free to write anytime  |
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Post by BlueAndGold on Oct 20, 2021 12:03:33 GMT
Hi!  |
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Post by potet on Oct 20, 2021 17:11:14 GMT
I wish you a busy retirement. I retired in 1999, and from then on I have had the time to write the books I had planned for decades.
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Post by Retread-Retired-Cameron on Oct 20, 2021 20:08:24 GMT
Good to see you're still breathing.
Retirement has different meanings for different people. Are you retired from writing or age-related retired?
I'm asking because I'm age-related retired [though the kids are a full-time job] and I'd have to make a whole lot more from royalties before it would affect my taxes.
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Post by Deleted on Oct 20, 2021 21:42:34 GMT
I know it's been awhile since I've logged in and commented on anything. But I've retired and also all of my books. Mainly for tax reasons. I do miss writing and everyone I've met from Lulu so much. I just wanted to say hi to everyone and I hope everyone is well. Those that have my email address feel free to write anytime Greetings, my friend. |
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Post by benziger on Oct 21, 2021 12:52:26 GMT
JesusNinja, that can't be the solution: suffering because of the tax office. I don't know in which country you live, but I know that in almost all countries it is possible to arrange for the tax burden to remain within limits. Can't this be re-arranged so that you can write again, your readers can read again, and the tax office can get its share without tearing off your skin and hair?
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Post by BlueAndGold on Oct 21, 2021 13:16:18 GMT
Tax reasons!
That doesn't sound right.
Something not right.
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Post by JesusNinja on Oct 23, 2021 13:18:12 GMT
Retired from everything except training martial arts and lots of kettle bell workouts lately. Yes tax reasons. In my state they do not tax SS income. The Federal government does though but only 50 percent is taxable I think. But in either case the book income would need to be reported and could potentially put me over my limit. Meaning to prevent having money taken out of my SS I eliminated all other income for the moment. This allows me to receive a full check each month and in these times it's needed. I'm actually getting three times the amount I was getting working part time, for my dad, and writing. So eliminating all of those didn't hurt much. As far as writing is concerned I may come back one day. I have all my interiors backed up on the pc. But right now my health and longevity is much more important and I'm enjoying my extra free time now.
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Post by Retread-Retired-Cameron on Oct 23, 2021 13:58:56 GMT
Federal Income Tax on Social Security Retirement depends on 'combined income'. An individual with 'combined income' between $25,000 and $34,000 [all sources] may have to pay Federal Income Tax. www.ssa.gov/benefits/retirement/planner/taxes.htmlThe formula is Adjusted Gross Income [all income from all sources (wages, self-employment, royalties, taxable interest, etc) minus deductions] + Nontaxable Interest [interest income not subject to taxation] + 50% of Social Security Benefits = Combined Income For example an unmarried individual receiving Social Security Retirement of $1,250 monthly would be getting $15,000 per year. In 2020 the standard deduction for someone filing single was $12,400 [married filing jointly was $24,800]. If the individual had no other income the AGI would be [Total Income with nothing from wages, self-employment, royalties, taxable interest, etc] $15,000 - [Standard Deduction] $12,400 = $2,600. If you add the AGI of $2,600 plus 50% of Social Security Benefits which is $7,500 and assuming there is no Nontaxable Interest Income you have a Combine Income of $10,100. Best advice is check with a tax expert before making a permanent decision. |
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Post by BlueAndGold on Oct 23, 2021 14:01:10 GMT
I believe other income is not an issue on your first year ONLY of SS. This prevents the newly retired from being burned that first year. You should read up on it. REGARDLESS, focus on the important things! Health and longevity are good things. Congrats on your newfound free time! |
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Post by BlueAndGold on Oct 23, 2021 14:14:49 GMT
Here Ninja,
I copied this from the SSA flyer about this issue:
_________________________________________________
Special rule for the first year
you retire
Sometimes people who retire in mid-year
already have earned more than the annual
earnings limit. That’s why there is a special
rule that applies to earnings for one year,
usually the first year of retirement. Under
this rule, you can get a full Social Security
check for any whole month you’re retired,
regardless of your yearly earnings.
In 2021, a person younger than full
retirement age for the entire year is
considered retired if monthly earnings are
$1,580 or less.
For example, John Smith retires at age 62
on October 30, 2021. He will earn $45,000
through October. He takes a part-time
job beginning in November earning $500
per month. Although his earnings for the
year substantially exceed the 2021 annual
limit ($18,960), he will receive a Social
Security payment for November and
December. This is because his earnings
in those months are $1,580 or less, the
monthly limit for people younger than
full retirement age. If Mr. Smith earns
more than $1,580 in either November or
December, he won’t receive a benefit for
that month. Beginning in 2022, only the
annual limit will apply to him.
Also, if you’re self-employed, we consider
how much work you do in your business
to determine whether you’re retired. One
way is by looking at the amount of time
that you spend working. In general, if you
work more than 45 hours a month in self-
employment, you’re not retired; if you work
less than 15 hours a month, you’re retired.
If you work between 15 and 45 hours a
month, you won’t be considered retired
if it’s in a job that requires a lot of skill, or
you’re managing a sizable business
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Post by Deleted on Oct 23, 2021 14:29:39 GMT
Retired from everything except training martial arts and lots of kettle bell workouts lately. Yes tax reasons. In my state they do not tax SS income. The Federal government does though but only 50 percent is taxable I think. But in either case the book income would need to be reported and could potentially put me over my limit. Meaning to prevent having money taken out of my SS I eliminated all other income for the moment. This allows me to receive a full check each month and in these times it's needed. I'm actually getting three times the amount I was getting working part time, for my dad, and writing. So eliminating all of those didn't hurt much. As far as writing is concerned I may come back one day. I have all my interiors backed up on the pc. But right now my health and longevity is much more important and I'm enjoying my extra free time now. Find out if it applies to Passive income. You're not really working. You're doing nothing, just collecting the cheque. Say for example someone owns a building and collects rent, are they not entitled to a pension? |
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Post by Retread-Retired-Cameron on Oct 23, 2021 14:42:35 GMT
Health and longevity, yes they are important.
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Post by Retread-Retired-Cameron on Oct 23, 2021 16:09:44 GMT
Retired from everything except training martial arts and lots of kettle bell workouts lately. Yes tax reasons. In my state they do not tax SS income. The Federal government does though but only 50 percent is taxable I think. But in either case the book income would need to be reported and could potentially put me over my limit. Meaning to prevent having money taken out of my SS I eliminated all other income for the moment. This allows me to receive a full check each month and in these times it's needed. I'm actually getting three times the amount I was getting working part time, for my dad, and writing. So eliminating all of those didn't hurt much. As far as writing is concerned I may come back one day. I have all my interiors backed up on the pc. But right now my health and longevity is much more important and I'm enjoying my extra free time now. Find out if it applies to Passive income. You're not really working. You're doing nothing, just collecting the cheque. Say for example someone owns a building and collects rent, are they not entitled to a pension? Passive Income [owning a building and collecting rent] is generally taxable in the US.
Pensions in the US can be a touchy subject. For example when Social Security was originally set up back in the 1930s it was supposed to be one third of what people would retire on, with the other two thirds being personal savings and a pension from the former employer. The reality is many employers in the US don't offer pensions these days and it doesn't take much to wipe out personal savings for retirement. [My retirement savings for the last decade would buy a twelve-pack of cheap beer.]
Back during the financial downturn in 2008 / 2009 people who were freshly out of work and couldn't find a comparable job, who had an IRA or other savings, often couldn't get assistance in many states due to having an asset they could use. When the choice is between being homeless and / or going hungry or using what was in an IRA or savings account meant for retirement needs, which choice is better?
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Post by Deleted on Oct 23, 2021 19:37:31 GMT
Find out if it applies to Passive income. You're not really working. You're doing nothing, just collecting the cheque. Say for example someone owns a building and collects rent, are they not entitled to a pension? Passive Income [owning a building and collecting rent] is generally taxable in the US.
Pensions in the US can be a touchy subject. For example when Social Security was originally set up back in the 1930s it was supposed to be one third of what people would retire on, with the other two thirds being personal savings and a pension from the former employer. The reality is many employers in the US don't offer pensions these days and it doesn't take much to wipe out personal savings for retirement. [My retirement savings for the last decade would buy a twelve-pack of cheap beer.]
Back during the financial downturn in 2008 / 2009 people who were freshly out of work and couldn't find a comparable job, who had an IRA or other savings, often couldn't get assistance in many states due to having an asset they could use. When the choice is between being homeless and / or going hungry or using what was in an IRA or savings account meant for retirement needs, which choice is better?
What a useful link, and Americans are very clear when they write. |
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