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Social Security Social Security benefits and tax issues


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Old 03-03-2014, 08:58 PM
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Annuities and social security benefit taxation

I've been talking to an investment advisor and he made a statement that I'd like to verify because I think he's incorrect.

He says that if you have an annuity in an ira and start taking annuity payments, those amounts, while taxable as ordinary income (assuming all the ira funds were originally tax deferred), do not count in the calculation for whether your social security income is taxable. As far as I can find online it appears that it would count.

Do you have any tax experts that can verify who is correct.



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Old 03-04-2014, 04:32 AM
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Originally Posted by sirto11 View Post
I've been talking to an investment advisor and he made a statement that I'd like to verify because I think he's incorrect.

He says that if you have an annuity in an ira and start taking annuity payments, those amounts, while taxable as ordinary income (assuming all the ira funds were originally tax deferred), do not count in the calculation for whether your social security income is taxable. As far as I can find online it appears that it would count.

Do you have any tax experts that can verify who is correct.
he is correct.In general, Social Security benefits are not taxable to the recipient; however, depending on your marital status and the amount of money you make in a particular year, MAGI I mean, your benefits may become taxable. You can do the following quick computation to determine whether some of your benefits may be taxable: First, add one-half of the total Social Security benefits you received to all your other income, including any tax exempt interest and other exclusions from income.Then, compare this total to the base amount for your filing status. If the total is more than your base amount, some of your benefits may be taxable.



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Old 03-04-2014, 03:49 PM
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he is correct.In general, Social Security benefits are not taxable to the recipient; however, depending on your marital status and the amount of money you make in a particular year, MAGI I mean, your benefits may become taxable. You can do the following quick computation to determine whether some of your benefits may be taxable: First, add one-half of the total Social Security benefits you received to all your other income, including any tax exempt interest and other exclusions from income.Then, compare this total to the base amount for your filing status. If the total is more than your base amount, some of your benefits may be taxable.
Yes, I understand that but that isn't my question.

What I want to know is whether the annuity payments are they included in the MAGI. As far as I can find online it appears that they are. Can you refer me to anything on the internet that expressly states that annuity payments can effect the taxability of SS benefits?



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Old 03-04-2014, 04:03 PM
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Originally Posted by sirto11 View Post
Yes, I understand that but that isn't my question.

#1;What I want to know is whether the annuity payments are they included in the MAGI. As far as I can find online it appears that they are.



#2;Can you refer me to anything on the internet that expressly states that annuity payments can effect the taxability of SS benefits?
#1 as mentioned above, no
#2; i guess you can contact the IRS for more info in detail



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Old 03-04-2014, 04:05 PM
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Originally Posted by sirto11 View Post
Yes, I understand that but that isn't my question.

What I want to know is whether the annuity payments are they included in the MAGI. As far as I can find online it appears that they are. Can you refer me to anything on the internet that expressly states that annuity payments can effect the taxability of SS benefits?
pleaxe visit the IRS website here;http://www.irs.gov/pub/irs-pdf/p915.pdf



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Old 03-04-2014, 04:34 PM
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Originally Posted by Wnhough View Post
#1 as mentioned above, no
So, you are saying that although MAGI includes all your other income it doesn't include the annuity payments?



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Old 03-04-2014, 05:01 PM
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MAGI(provisional income)=50% of soc sec benefits(annual total)+tax exempt income +excl foreign income;



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Old 03-05-2014, 07:52 PM
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Originally Posted by sirto11 View Post
So, you are saying that although MAGI includes all your other income it doesn't include the annuity payments?
NOTE; if your pension( i guess also annuity) is taxable , then it needs to be included as income to calculate MAGI, provisional income, I mean



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