Tax Experts
Pension Payments & Social Security Tax
By Kevin McCormally, Editorial Director, Kiplinger.com
April 2008
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Q: I recently retired. Will my pension be subject to Social Security tax of 7.65%? -- Carl S.
Kevin's Answer
No. Pension income is not subject to the Social Security tax. It applies to wages (including deferred compensation) and self-employment income.
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Reader Comments (2)
Posted by: Poppi at 04/10/2010 01:23:15 PM
I am collecting a pension, next year I will take early retirement and collect Social Security, in addition I will be working part time. So I have $14,100.00+645.00 + social security benefit= Gross annual income. What is the allowable gross income before I incurr tax penalties? i.e $14,100+645.00+Social security= $35,000.00
Posted by: walt Williams at 05/06/2010 10:32:35 PM
I am retiring from teaching in California next year -my pension is $5700 per month-I am married -how much will i pay in taxes each month?