Are you 65 or older and considering a seasonal or part-time job this summer? The extra income can be rewarding, but it may also change your tax picture. Individuals age 65 or older may qualify for a higher standard deduction, which could reduce taxes on modest earnings. But if you’re receiving Social Security benefits, additional wages can make more of your benefits taxable and may push some of your income into a higher tax bracket. Social Security and Medicare (FICA) taxes still apply to most wages, even after retirement. Before saying “yes” to that extra gig, review how the added income could affect your tax situation. A little planning now can help you avoid surprises later. Call us.
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