Social Security Full Retirement Age
Year of Birth | Minimum Retirement Age for Full Benefits |
---|---|
1937 or before | 65 |
1938 | 65 + 2 months |
1939 | 65 + 4 months |
1940 | 65 + 6 months |
1941 | 65 + 8 months |
1942 | 65 + 10 months |
1943 to 1954 | 66 |
1955 | 66 + 2 months |
1956 | 66 + 4 months |
1957 | 66 + 6 months |
1958 | 66 + 8 months |
1959 | 66 + 10 months |
1960 or later | 67 |
Source: Social Security Administration
Depending on the amount of other income that you receive, as well as the way in which you file your annual income tax return, you could be taxed on either 50% or 85% of your Social Security income. And if you are, it could make a big difference in your retirement lifestyle.Are Social Security Retirement Income Benefits Taxable?
The government calculates your Social Security retirement income payment amount – and can also decrease your Social Security retirement benefit amount – based on all of your “reportable” income. Any reportable income from mutual funds, corporate bonds, treasuries, CDs (certificates of deposit), and individual stocks could decrease your Social Security benefit payments. Even the interest that you may receive on municipal (“muni”) bonds – which is typically tax exempt – is also considered when determining the taxability of your Social Security retirement benefits. In order to determine whether or not your benefits will be taxable, the Social Security Administration (SSA) uses a figure that is referred to as your “combined income.” This is determined by taking your adjusted gross income and adding any non-taxable interest and one-half of your Social Security benefits.Adjusted Gross Income + Non-taxable Interest + ½ of your Social Security benefits = Combined Income
So, for instance, if you file your federal income tax return as an individual (in 2021), and your combined income is:- Between $25,000 and $34,000, then you could have to pay income tax on up to 50% of your Social Security benefits;
- More than $34,000, up to 85% of your Social Security benefits could be subject to federal income tax.
- Between $32,000 and $44,000, you could incur federal income tax on up to 50% of your Social Security retirement benefits;
- More than $44,000, then up to 85% of your benefits could be taxable