If I retire at 65 this year and continue to earn money I know I will be penalized (taxed) on the addon income?

That being said when I become 66 will I continue to be taxed at my 65 year old rate or will it change?

Public Comments

1. You may be confusing two issues. One is taxation. The other is being required to pay back some of your SS benefits if you earn too much. Tax rates are the same regardless of age but 65 and over have a higher standard deduction.
2. If you are talking about income tax on social security there is no age limit for paying taxes on your social security. It is based on your icome. The amount of social security benefits that must be included on your income tax return and used to calculate your income tax liability depends on the total amount of your income and benefits for the taxable year. To find out whether any of your benefits may be taxable, compare the base amount for your filing status with the total of: One-half of your benefits. All of your other income, including tax-exempt interest. The base amount for your filing status is shown next: $25,000 if you are single, head of household, qualifying widow(er) or married filing separately living apart from your spouse at any time during the tax year. $32,000 if you are married filing jointly. $-0- if you are married filing separately living with your spouse at any time during the tax year Christine- EA Master Tax Adviser Check out my profile **This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you have provided.