Provisional Income

Submitted by Jeffery Ferrell on Thu, 2023-11-16 13:19

How does provisional income impact my Social Security? Once reaching full retirement age 67 am I free to make as much money as I want? Is there a point where my Social Security won’t get taxed.



Submitted by Alan - IRA critic on Thu, 2023-11-16 14:26

  • The higher your provisional income, the more of your SS income will be taxable, up to a maximum of 85% of your gross SS income prior to the Medicare amount deducted. If you are single, your SS begins to be taxed once provisional income exceeds 25k. If married filing jointly, that figure is 32k. Since these amounts have not been increased for many years, inflation has resulted in many more low and modest income taxpayers becoming subject to taxes on their SS income.
  • The earnings test is entirely different. Prior to FRA, if you earn more than a certain amount, your SS payment is reduced. This is a benefit reduction, not an income tax. This ends at 67 if that is your FRA.


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