Social security and taxes

[sportfish1]

New to this, but how many that have a pension have taxes withheld from your social security checks? I'm in MN so I will pay state tax too.
Thanks in advance!

[grizzley]

I have Federal tax withheld from both my pension and SS, initially it was so I didn't need to send in quarterly est. tax on other income.

[sportfish1]

I'm having it taken out of my pension, what percentage should I consider? I'm kinda lost on this one.

[EMOO]

Government an SS are just Giant Ponzi scheme. You pay Taxes on your SS weekly when working then as Gross income at end of year. Then Holy cow again when you collect in retirement years..
I have held out 15% on pension . Only good think about Illinois they don't Tax your Retirement but Good Ole Feds want your money.Again..

[vtec]

Here is the history of social security when it started getting taxed.
https://www.ssa.gov/history/taxationofbenefits.html

1983 is when it began. From the article:
"Congress passed and President Reagan signed into law the 1983 Amendments. Under the '83 Amendments, up to one-half of the value of the Social Security benefit was made potentially taxable income. "

[CI_Guy]

There are so many variables for each individual situation that you should talk to your tax or financial adviser, if you have one. A person would need much more personal info than anyone would want to divulge on a message board to give you any really useful advice.

[grizzley]

I figured out what normal tax bracket I would fall into and had that % deducted, think I am at 15% also. I'm all over the map on income from year to year, sometimes I'm covered with what I have withheld, sometimes I overpay, and sometimes I need to add additional quarterly payments so I'm not way underpaid and subject to penalties. I just keep it at what I originally had deducted and add to it by paying quarterly est. taxes if needed, drives me nuts sometimes!

[Baseline]

Originally Posted by EMOO

Government an SS are just Giant Ponzi scheme. You pay Taxes on your SS weekly when working then as Gross income at end of year. Then Holy cow again when you collect in retirement years..
I have held out 15% on pension . Only good think about Illinois they don't Tax your Retirement but Good Ole Feds want your money.Again..

Check your facts. FICA is not taxed twice. It is a regular deduction from gross wages not net wages. Like it or not SS has been a net gain for the average American worker. There are still 50% of all workers who arrive at retirement age with only SS for retirement income.

[Baseline]

The folks at SS will tell you what you should deduct and you can get a Minnesota estimate online on the MN tax website.

[sportfish1]

Thanks, now all I have to do is wait them out on hold!