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Veteran Services: Finance Questions

Finances

You're working, and you've got a family that depends on you - both now and down the road. Where do you invest your money? Do you borrow against the equity in your house? Through a preferred provider relationship with USAA, The American Legion can provide expert financial advice to just about any question.

Questions & Answers

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Financial Questions & Answers

Question:

When do you start paying taxes on Social Security benefits? And when are you responsible for having to return Social Security money? -Andy

Answer:

If you file single, you’ll have to include at least a portion of your Social Security benefits as income when you do your taxes if one half of your Social Security plus your other income (military retirement, investment income, etc.) exceeds $25,000 ($32,000 if you file jointly). We’re not sure what you mean about returning Social Security money?

If you are drawing Social Security retirement benefits before your normal retirement age (age 66 for those born from 1943-1954), you can only earn $14,160 and still receive full Social Security benefits. If you earn in excess of that figure, Social Security will deduct $1 from your benefits for every $2 you earn above $14,160. Even in that scenario, you wouldn’t be returning money to Social Security; they would just be withholding benefits. We hope this answered your questions.