[contact-form-7 id=”” title=”Question-Form”]
– OR –
JUST FIND YOUR ANSWERS BELOW:
Probably not, but whether you are audited or not will depend on what your tax situation is. Listed below is tax considerations to keep in mind when you make a financial hardship in-service withdrawal from a TSP account:
Your financial hardship withdrawal is considered a non-periodic payment for Federal income tax purposes. The TSP will withhold 10% of the taxable portion of your withdrawal for Federal income tax unless you increase or waive the amount of withholding.
Also, if you make a financial hardship withdrawal before age 59½, you may be subject to a 10% early withdrawal penalty tax on the taxable portion of your withdrawal.
You can get Social Security retirement benefits and work at the same time. However, if you are younger than full retirement age and make more than the yearly earnings limit, the SSA will reduce your benefit. For 2018 that limit is $17,040 if you are under full retirement age for the entire year, or $45,360 if you will reach full retirement age in 2018.
Starting with the month you reach full retirement age, you can get your benefits with no limit on your earnings.You also mentioned your dilemma whether to start social security benefits now or wait till your FRA – full retirement age. Your full retirement age is 66 if you were born between 1943 and 1954. Full retirement age is the age at which a person may first become entitled to full or unreduced retirement benefits.
If you start benefits before your FRA – you will be getting benefits for longer period – but the amount will be permanently reduced according to the number of months you started earlier. For instance – at age 65, you will get 93.3 percent of the monthly benefit because you will be getting benefits for an additional 12 months.
It depends on your filing status, number of dependents, and whether you are going to itemize deductions or use the standard deduction. If you are filing single with no dependents or itemized deductions, you can expect to have around $2,600 go to income tax.
If you are filing a joint return with only $30,000 as income, no dependents or itemized deductions, you would see $1,100 go to income tax.If you can provide me with your filing status, number of dependents, and itemized deductions, I can provide you with a more exact estimate of your tax situation.
It would be considered earned income. To apply or keep your disability benefits you can have earned income but you will have to keep it below a certain amount.
Every month you make more than $810, the month will be counted as trial work period. You can have 9 trial work periods a month during a 60-month (5 years) period. If you earn on an average more than $1,130 per month, the social security will start question your earnings ability and your benefits may be jeopardized. Social security may reevaluate your case and start questioning your ability to earn more. You are receiving social security benefits because you are unable to earn income. But if you “convince” them otherwise (by regularly earning more than $810), you will lose your benefits.
– REQUEST A FREE CONSULTATION –
[contact-form-7 id=”” title=”REQUEST A FREE CONSULTATION – SMALL”]