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Post by Retread-Retired-Cameron on Oct 23, 2021 20:04:46 GMT
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. Striving for clarity tends to help people avoid misunderstandings.
When it comes to retirement income, pensions, investments, and the tax agency, it pays to understand as much as possible even though the US Tax Code is written in a peculiarly distinct dialect of American English [it can actually put you to sleep late at night].
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Post by JesusNinja on Dec 7, 2021 7:36:30 GMT
The amount of SS you will be paid is determined on how many years you worked and how much you paid in. I retired early so am getting around $300 less than I would have at 67. At the moment there are no taxes on SS in my state and the amount I'll be getting in a year's time is not enough to be taxed by Federal. Any income is taxable whether passive or not. So retiring my books is keeping me under the line of being taxed. So I don't have to mess with filing each year. To be honest I'm getting enough SS to pay the bills and have money left over each month to put back into the bank. But I was sent a pamplet and worksheet showing me if I had extra income I needed to report it to the SSA. Otherwise I could lose it.
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Post by potet on Dec 7, 2021 10:33:10 GMT
Hello JesusNinja.
Make someone else you trust the recipient of your Lulu income, provided it doesn't make the trustee switch to a higher revenue bracket. Lulu will pay your royalties to the trustee's PayPal account. Thus you won't have to declare your royalties. The trustee will give you your Lulu money in cash. Depending on your agreement, you'll give the trustee a fee to reward them for their help.
In your case, the ideal trustee would be a teenage relative.
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Post by Retread-Retired-Cameron on Dec 7, 2021 13:32:21 GMT
The amount of SS you will be paid is determined on how many years you worked and how much you paid in. I retired early so am getting around $300 less than I would have at 67. At the moment there are no taxes on SS in my state and the amount I'll be getting in a year's time is not enough to be taxed by Federal. Any income is taxable whether passive or not. So retiring my books is keeping me under the line of being taxed. So I don't have to mess with filing each year. To be honest I'm getting enough SS to pay the bills and have money left over each month to put back into the bank. But I was sent a pamplet and worksheet showing me if I had extra income I needed to report it to the SSA. Otherwise I could lose it. What the federal government defines as potentially taxable income can be convoluted at times.
One example is someone being medically retired from the military. In this case the person can elect for retirement pay [which is potentially taxable] and VA Disability pay [generally not taxable at the federal level and not even listed on the tax return] or the person can elect for all payments to be made through the VA. On the other hand states with an income tax may tax money the federal government doesn't.
One thought is to keep writing, and once you reach full-retirement age start publishing again.
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