Navigating Tax Implications of Early Social Security and Disability Benefits

Dr. Friday Tax Tips
Dr. Friday Tax Tips
Navigating Tax Implications of Early Social Security and Disability Benefits
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In this enlightening episode of the Dr. Friday Tax Tips – One Minute Moment Podcast, Dr. Friday, an expert in tax and financial matters, delves into the complex tax implications faced by individuals who took early Social Security or received disability benefits during the challenging year of 2020. She discusses how additional income, such as wages from part-time jobs, can affect the taxability of Social Security benefits, including the potential need to repay a portion of these benefits. This episode is a must-listen for anyone navigating the nuances of Social Security and disability benefits in their tax planning. Don’t miss Dr. Friday’s insights to make informed financial decisions.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial firm. To get more info go to www.drfriday.com. This is a one-minute moment.

Due to the hardships of 2020, many people had to reach out to other situations. Maybe you took early Social Security, which may have limited your earnings. Or maybe they’re also getting long-term disability, but you also had somebody in the house that was working. So you need to determine long-term Social Security in itself from disability Social Security is not taxable unless you have other income. Same thing with any Social Security benefits. But if you’re working a job on the side, you might be making your Social Security not only taxable, but if it’s early Social Security, you might be paying back $1 for every $2 you’ve earned above the limitations.

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