Social security payments and taxes

[HeatherC]

Just wanted to say that the $6000 deduction through 2028 is per person not couple. So if you and your spouse are collecting, it is a $12,000 deduction (if married and filing jointly), which can make a big difference. Wasn’t sure if people are aware of that.

 

[ibob52]

November 2025 . I estimated my 2025 taxes using . tax act dot com

 

[wabbott]

My mom was retired and drawing Social Security for 28 years. 27 of those years she paid and owed nothing in Federal and State income taxes. She used a tax loophole to reduce her RMD from her IRA. That loophole has long been closed. Thanks Congress.
I know of at least one person who is about 10 years old than me that claims she has had no income tax liability in a decade. But she is living on a lot less than I am.

There is still a "loophole" available for required minimum distributions (RMD) withdrawn from IRAs and 401Ks. It's called qualified charitable distribution (QCD). You must be 70 1/2 and the money must be donated to qualified charities. Also, the money must be distributed directly from the IRA/401K trustee directly to the charity. In other words, you can't touch it.

The amount that is donated counts toward your total RMD, and also reduces your taxable income.

https://www.irs.gov/newsroom/senior...rden-by-donating-to-charity-through-their-ira

A QCD is a nontaxable distribution made directly by the trustee of an IRA to organizations that are eligible to receive tax-deductible contributions. QCDs can't occur from Simplified Employee Pension plans and Savings Incentive Match Plan for Employees IRA.

Making a QCD can benefit the taxpayer by reducing their taxable income while they support qualifying charitable organizations of their choice. The taxpayer doesn't have to worry about meeting the standard deduction or itemizing deductions with a QCD.

 

[tvguy]

There is still a "loophole" available for required minimum distributions (RMD) withdrawn from IRAs and 401Ks. It's called qualified charitable distribution (QCD). You must be 70 1/2 and the money must be donated to qualified charities. Also, the money must be distributed directly from the IRA/401K trustee directly to the charity. In other words, you can't touch it.

The amount that is donated counts toward your total RMD, and also reduces your taxable income.

https://www.irs.gov/newsroom/senior...rden-by-donating-to-charity-through-their-ira

A QCD is a nontaxable distribution made directly by the trustee of an IRA to organizations that are eligible to receive tax-deductible contributions. QCDs can't occur from Simplified Employee Pension plans and Savings Incentive Match Plan for Employees IRA.

Making a QCD can benefit the taxpayer by reducing their taxable income while they support qualifying charitable organizations of their choice. The taxpayer doesn't have to worry about meeting the standard deduction or itemizing deductions with a QCD.

I may be selfish but I am looking for ways to not owe taxes AND KEEP the money.

 

[georgina]

If your estimated income at the end of the tax year is different from what you originally estimated, you can vary the amount paid on your quarter 4 payment that is due January 15 of the following year.

We have had this happen several times, as we have a mutual fund that doesn't declare its capital gains until about Thanksgiving. We make our best estimate when we use the forecast spreadsheet early in the tax year, but it's never exact. This year, we got close, and are expecting a refund of about $100.

The target is to reach zero owed or zero refund due. That means you've paid all that's legally owed, and they didn't have use of your money for several months.

https://www.irs.gov/taxtopics/tc306#:~:text=Generally, taxpayers should make estimated,using the annualized installment method.

Generally, taxpayers should make estimated tax payments in four equal amounts to avoid a penalty. However, if you receive income unevenly during the year, you may be able to vary the amounts of the payments to avoid or lower the penalty by using the annualized installment method.

Yeah, I know that's the target, I'm just lazy. The interest rates on cash are not that great. I pay the 110% of the previous year and don't think about it. We cashed out an investment in 2024 and owed for that, so I was way overpaid for 2025, just applied it to my 2026 estimated tax.

 

[LuvOrlando]

I've been on SSDI a few years and immediately started to have them pull $200 a month for taxes as a guesstimate. To be honest, I'm not 100% certain that's the right amount but our CPA never said I'm off with the number so I have left it be.

In general, with taxes I would so much rather have them owe me than me owe them, if they owe me and life gets crazy so I'm late (which has happened due to illness) no-one cares but flip that and to be a person who owes taxes is breaking the law, it is criminal to owe and be late. No thanks for this lady

 

[disykat]

I agree with Miffy to have Maximum withheld and then adjust next year if it was too much.

As the lower earner, the problem isn't you, it's what is being withheld by your higher earning spouse. Your additional income may push you together into a higher tax bracket so you may find he'll need to adjust when everything evens out. Taking out more from yours initially will help protect you from a surprise that first year.

 

[disykat]

Oops, don't know how that happened. Sorry for the double post!

 

[barkley]

Well, our CPA said to have nothing withheld from Social Security for the first full year my wife and I both were on Social Security to see how things work out. 2025 was that year. We have a small annuity payment, $1,200 a month and the company it is held by automatically does withholding on that. 20% Feds, 5 % State. Got our taxes done. $2,900 withheld Fed and State Tax on the annuity. $1,900 refund combined from Feds and State. So no reason to do withholding on Social Security.

since you have a CPA doing it they are aware but anyone in the 65 and over age group needs to keep in mind that the new senior deduction of $6500 each is only good through 2028 so an individual/couple's tax liability may be very different when they go to file their 2029 return. i've got a mental note to check our income absent that deduction when I go to do our 2028 return b/c I would rather be paying via estimated taxes vs. getting hit with a penalty.

I know of at least one person who is about 10 years old than me that claims she has had no income tax liability in a decade. But she is living on a lot less than I am.

entirely possible even with some decent streams of income-a number of military and civil service pensions can be in part or whole entirely tax exempt depending on circumstances during service/employment/retirement (and survivors on those pensions frequently receive the same tax benefits). shoot-we had a friend who fell under an obscure survivor's military pension that not only created zero state or federal tax liability she was also exempted from paying property taxes on her home.