threshold at which a portion of your Social Security becomes subject to Fed income tax. It is not a 'dollar for dollar' situation, and it is not a means test at all. You simply pay more tax on that portion of your income when you have other income that excedes that threshold. The formula used to figure how much of a person's SS income is subject to tax is a convoluted thing, but in short, when you make other money, you will pay tax on SS, the more you make the more of it is taxed. If one has a large enough income, the benefit becomes just not worth the figures, it will never all vanish, although 100% of the benefit can become subject to taxation, and for many people it is right out of the gate.
People who retire early get the same reduction in benefits, no matter what their income is, at different ages you get a different hit, the hit is the same if you make millions or if you make peanuts, the same percentage of reduction applies. It is not means tested at all.
People who make money- and for some income continues without work, taxable income, the more they make, the more taxes they pay and less of the benefit amount is protected from taxation, more of it is counted as taxable income.
In absolutely no way is anyone's Social Security benefit amount determined by means testing, it is determined by your contributions and your retirement age, PERIOD.
Also, after 65 we are all still taxed on income. That never stops.
If your "provisional income" (which is your adjusted gross income -- including 401(k) withdrawals and half of your Social Security benefits, plus any tax-exempt interest from mutual bonds) exceeds $25,000 ($32,000 on a joint return), then up to half of your Social Security benefits can be taxable.
If your provisional income exceeds $34,000 ($44,000 on a joint return) up to 85% of your benefits are taxable.
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