Retirement is something we all want in order to be able to collect a Social Security check. In the United States there is the great advantage of being able to work while collecting this benefit, although with certain conditions.
If you have decided to apply for your Social Security benefit, but it is not enough and you need to earn more money, you can always work. However, it is not a good idea to work full time, because then you will not have the feeling of being retired.
In addition, as we will see below, retiring and working at the same time means paying more taxes. If you don’t want to have any problems when it comes to taxes, pay attention to this article to find out when you have to pay taxes if you collect Social Security.
When do I have to pay taxes with Social Security?
The idea of all this is quite simple, and it is that you do not need to pay taxes at any time if you are only collecting your Social Security check. In the United States, retired people stop worrying about taxes, since they have been doing it all their lives and it is time to rest.
However, there is one situation where paying taxes is mandatory. If you choose to work while collecting your Social Security check, in the United States you will have to pay taxes directly related to that work. In theory, and it all depends on the job, Social Security money does not have taxes, but paycheck money is.
In this sense, it is your life situation that determines whether you will need to pay taxes or not. If your Social Security check does not get you by during the month, you will have to work a part-time job in order to have peace of mind. In this case, it is better to pay your taxes on time and forget about having problems with this situation.
Other cases to consider
Although it is true, as we have commented before, that when it comes to paying your Social Security taxes we find that we do not have to do so, there is a very specific situation in which this is totally required. This case occurs on very rare occasions, so you may never encounter something like this in your life.
Paying mandatory taxes when you collect your Social Security check happens when your income is very substantial. And by income, we don’t just mean income from work. With an average salary, paying taxes should not be a problem. We are talking about income in general, whether from work or not.
Therefore, all people who have invested in a business and are currently receiving some profit or earnings from that business, will have to pay the related taxes. In addition, if the profit margin is very large, that person may even have to pay Social Security taxes. In these cases, the best thing to do is to look for a consultant to help us and advise us on what is the best thing to do.