WHAT YOU NEED TO KNOW ABOUT SOCIAL SECURITY AND YOUR TAXES - NEW LIMITS FOR 2023

[My Northern Wisconsin]

   
By:  Davette Lynne Hrabak, CPA, CFE, CBM, ATA, ATP, ABA, ECS, CGMA, https://www.DavetteLynneHrabak.com
“When it comes to taxes, save the lion’s share; enter between the lions to get this special care.”

   

Social Security and Medicare are not just about retirement; they also have tax issues for individuals and businesses.

Each year, the maximum amount of earnings that is subject to Social Security Tax and Medicare Tax changes. 

For 2023, the maximum amount of earnings subject to Social Security Tax was $160,200 and for 2024 it will be $168,600.

For 2023 and 2024, the maximum earnings subject to Medicare Tax is unlimited.

A very common question that many people have as they are nearing retirement, and when they are in the first year of their retirement, is, “What is the maximum amount of earnings that I can make and still receive my full Social Security benefits?” 

For 2023, you could have made $21,240 if you were under the full retirement age at December 31, 2023.  For 2024, if you are under the full retirement age at year’s end, you can make $22,320.  However, if it is the year in which you reach full retirement age, for the months leading up to full retirement age only, you could have made $56,520 for 2023 and you can make $59,250 for 2024.  Further, in the month that full retirement age is reached and later, there is no limit to the amount you can earn and still receive full benefits.

Just because you can earn as much as you like and still get your full benefits once you hit full retirement age, you still have to pay taxes on any portion of your Social Security that is taxable, just like you did in years before you hit your full retirement age.  The rules are for a calculation of reduction of benefits, not a reduction of taxes.

Remember, if you have already filed but realize that you could have had a credit or deduction that you missed, it is not too late; you can always amend your return.  If you need more information or believe you could qualify for them, call Davette at 715-339-6638 for a free, no obligation quote.  Her office is located between the lion statues at 164 South Lake Avenue in Phillips.

When the right tax and financial advice is essential, talk to someone with an unmatched level of knowledge, experience, and education.  A CPA understands the business of taxes and finance and can provide trusted advice and services during the tax season and throughout the calendar year.

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SUPPORT LOCAL BUSINESSES - SHOP PRICE COUNTY FIRST:  Davette Lynne Hrabak, CPA, located at 164 South Lake Avenue in Phillips, specializes in tax return preparation, business start-up services, consulting, bookkeeping, payroll, and all your accounting needs.  Call 715-339-6638 or visit Davette's website.  Follow her Facebook page.