How much are taxes on pension ?

Round the block again

Well-Known Member
I retired January 2020, for what I get 4,000 they take out $474.00 a month federal taxes. But none for state So what’s best for me to save up. I’m in New York and save 200 a month for state tax. Will I get money back from federal at tax time?
I wish they could tell you more what to expect when you retire.
 

Shiftless

Well-Known Member
I retired January 2020, for what I get 4,000 they take out $474.00 a month federal taxes. But none for state So what’s best for me to save up. I’m in New York and save 200 a month for state tax. Will I get money back from federal at tax time?
I wish they could tell you more what to expect when you retire.

Since we don't know your tax liabilities for 2020 and you are asking the question???
You may want to talk to someone with real knowledge of your numbers you present to them that are knowledgeable of your state tax liability. Simple work for a CPA or if you use a enrolled tax person to give you that number specific for you tax liabilities.

In my area as in many areas, they do pro bono tax help for seniors (really just about anybody). Usually in the free papers or local papers for times and locations for services for those who need a little assistance. Again! You will have to open up your financial portfolio to get a real numbers tho.

Me? I pay my own quarterlies since I have been retired.
 

Jones

fILE A GRIEVE!
Staff member
I retired January 2020, for what I get 4,000 they take out $474.00 a month federal taxes. But none for state So what’s best for me to save up. I’m in New York and save 200 a month for state tax. Will I get money back from federal at tax time?
I wish they could tell you more what to expect when you retire.
In New York, all Social Security retirement benefits are exempt from taxation. Income from retirement accounts or a private pension is deductible up to $20,000.

 

olroadbeech

Happy Verified UPSer
before i retired , filled out a form for % with holding for federal and state taxes. so you should contact your pension plan and see if you could schedule automatic with holding of certain percentage.

Also since our income went down so much we pay less taxes. we get a good federal refund and one from California but not much. we only with held 10% on both but I'm sure NY taxes are pretty high.
 

cachmeifucan

Well-Known Member
I am in California. In this state if you earned a pension in Ca. They will chase you to other states and demand you pay the difference to Ca. for state income tax if the state you move collection is less than they would collect!

Hence the term PAY UP SUCKA!
By the time I retire killinios will be doing the same thing. A progressive income tax is on the ballot in the land of Lincoln in November hopefully brings out the Republicans against this tax
 

jd1872

Well-Known Member
I am in California. In this state if you earned a pension in Ca. They will chase you to other states and demand you pay the difference to Ca. for state income tax if the state you move collection is less than they would collect!

Hence the term PAY UP SUCKA!
ca didnt chase me down, i left 3/19, moved to another state, i dont think they can collect
 

Brownslave688

You want a toe? I can get you a toe.
By the time I retire killinios will be doing the same thing. A progressive income tax is on the ballot in the land of Lincoln in November hopefully brings out the Republicans against this tax
It’s not just a progressive tax but it opens the door for the gov to change about anything he wants in the tax laws
 

oldupsman

Well-Known Member
In Pennsylvania, all retirement income and social security is tax free on the state and local level. I pay 0 tax
to the state or my local township.
 

BStL

New Member
Retirement income is subject to income taxes in many states.
Federal Tax--Pension income is considered taxable income, and Social Security payments are also taxable depending on your total income, so don't think that you get 100% of the amount on your statement. And after you get Medicare at age 65, you have to pay about $125 a month out of your social security check for that insurance.
State Taxes--Pension income, Social Security, IRAs, all of these are treated differently by each state. Some exempt all or part of this income from STATE tax, but they cannot make any rules that stop the Federal government from taxing these. You should explore your state's rules on their website to learn how they treat these sources.
Another tidbit to consider is that if you take another job with income after you start taking Social Security, you may have to pay back $1 for every $3 earned prior to reaching age 70.
No matter what, however, you will be able to keep the vast majority of your retirement income, and hopefully it will allow you to live a comfortable fulfilling retirement.
 

olroadbeech

Happy Verified UPSer
Like mentioned the tax bite is not so bad because you will be in a lower tax bracket. We made about 70k last year between pension and social security and our California state tax was $79.

Fed was around 4k. At age 65 you get extra exemptions.

But in retirement , your expenses go way DOWN. For us no more commuting so all those expenses go away. Car ins went down because of less mileage . Many bills went down. Plus we were lucky enough to pay off house 2 years before I retired.

Our biggest expenses now are groceries and eating out and our homeowners insurance.

The one negative is you are basically on a fixed income and most utilities and prices on everything keep going up every year. But we planned for that also. It still sucks though to get yearly increases on bills every year. When working I would just volunteer some for OT.
 
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