[litttlebear]

I own and drive my van, will be 62 next month, and wondering about starting to draw social security. How does the Soc Sec Admin determine if my earnings are over the allowed "earned income" limits? Do they look at gross or net income? My net should be under the $11k maximum.

[Fkatz]

Hi Littlebear,

sorry for the delay in replying,

YOUR SOCIAL SECURITY COULD BE TAXED ON ANY INCOME OVER (NOT SURE OF THE EXACT AMOUNT) BUT SOMEWHERE BETWEEN $11,-$14,000 YOU CAN CHECK ONLINE AT [www.SSA.COM.] tHE SITUATION WOULD DEPEND ON WHAT YOUR NET WOULD BE, AND THE COMBINED INCOME FROM YOU AND YOUR WIFE IF MARRIED.

INOTHER WORDS, ITS WOULD LOOK LIKE THIS ON THE FEDERAL 1040 RETURN BEFORE DEDUCTIONS.
EXAMPLE 1 EXAMPLE 2
LINE 1 WAGES (WIFES) 12,000 12,000
LINE 7 PROFIT/LOSS FROM BUS (YOU)( 4,000) 18,000 LINE 9 SSA 16,850 AMT TAXED 0 16,850

TOTAL AGI $8,000 46,850

IT COULD BE ANYWHERE FROM 50% TO 100% TAXED DEPENDING ON WHAT PROFIT IS MADE BY YOU. IT WOULD BE VERY DIFFICULT TO EXACTLY FIGURE THE THAT AMOUNT. THAT WOULD BE FOR 3 YEARS UNTIL YOU REACH AGE 65, ONCE THAT IS REACHED THEN NO TAX WILL BE CHARGED TO YOU, YOU CAN MAKE UNLIMITED INCOME.

fRANK