Topic: Taxes: Withholding on Pension Benefits? (on SSDI)
susank
Frequent Contributor (1K+ posts)
Member # 22150
posted
I am preparing to be poor.
Will lose health insurance soon. Need to be able to pay for Medicare/Medigap or Cobra.
I have been on SSDI and have not filed taxes in years. (Half the SSDI income plus other income still too low to be taxable).
I am planning to take my pension benefits early. eg ~ $400/month. Disabled/under 65. Will need that income to help pay for the increased insurance premiums.
That added amount not enough to make my SSDI taxable. (I hope).
But - I would be required to pay taxes on the pension income? FICA/withholding?
Thanks. To add: Assuming the pension income is taxable - how is the rate calculated?
-------------------- Pos.Bb culture 2012 Labcorp - no bands ever Igenex - Neg. 4 times With overall bands: IGM 18,28,41,66 IND: 23-25,34,39 IGG 41,58 IND: 39 Bart H IGG 40 Posts: 1613 | From Texas | Registered: Aug 2009
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poppy
Frequent Contributor (1K+ posts)
Member # 5355
posted
maybe you should check into sources of free tax help, like AARP, etc.
Posts: 2888 | From USA | Registered: Mar 2004
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posted
Yes, I think you do need to pay taxes on it. I don't think you have to do FICA.
-------------------- --Lymetutu-- Opinions, not medical advice! Posts: 96222 | From Texas | Registered: Feb 2001
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lymednva
Frequent Contributor (1K+ posts)
Member # 9098
posted
FICA is only on earned income, not pensions. You paid it on the money when you earned it. My pensions are low because the state decided I was still able to teach school, even though I was on SSDI and LTD. I have enough deductions that I have not had to pay taxes on pension income.
-------------------- Lymednva Posts: 2407 | From over the river and through the woods | Registered: Apr 2006
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