Selling stock. Paper not live cattle.

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I think the reduction in benefits due to other earnings is only for people who have not reached full retirement age. Full retirement age for someone born in 1957 is 66 years and 6 months old. Per the SSA, "Beginning with the month you reach full retirement age, your earnings no longer reduce your benefits, no matter how much you earn."

Also, SSA says "When we figure out how much to deduct from your benefits, we count only the wages you make from your job or your net profit if you're self-employed. We include bonuses, commissions, and vacation pay. We don't count pensions, annuities, investment income, interest, veterans benefits, or other government or military retirement benefits."

So, looks like only earned income is counted to determine any reductions. But someone who is 67 years old should not see a reduction due to having reached full retirement age already.
 
I think the reduction in benefits due to other earnings is only for people who have not reached full retirement age. Full retirement age for someone born in 1957 is 66 years and 6 months old. Per the SSA, "Beginning with the month you reach full retirement age, your earnings no longer reduce your benefits, no matter how much you earn."

Also, SSA says "When we figure out how much to deduct from your benefits, we count only the wages you make from your job or your net profit if you're self-employed. We include bonuses, commissions, and vacation pay. We don't count pensions, annuities, investment income, interest, veterans benefits, or other government or military retirement benefits."

So, looks like only earned income is counted to determine any reductions. But someone who is 67 years old should not see a reduction due to having reached full retirement age already.
My 80 year old neighbor got skinned on Medicare premiums for a year after a stock sale.
His monthly premiums went from 170 to over 500 a month for a year.
I don't know where that income bracket is .
In the grand scheme that might be pennies.
 
I think the reduction in benefits due to other earnings is only for people who have not reached full retirement age. Full retirement age for someone born in 1957 is 66 years and 6 months old. Per the SSA, "Beginning with the month you reach full retirement age, your earnings no longer reduce your benefits, no matter how much you earn."

Also, SSA says "When we figure out how much to deduct from your benefits, we count only the wages you make from your job or your net profit if you're self-employed. We include bonuses, commissions, and vacation pay. We don't count pensions, annuities, investment income, interest, veterans benefits, or other government or military retirement benefits."

So, looks like only earned income is counted to determine any reductions. But someone who is 67 years old should not see a reduction due to having reached full retirement age already.
I get a letter each January telling me what im allowed to make that year. In 2024 it was almost 60,000. In 2023 it was less than 20,000. I had to defer some pay for a few months in 2023. Not working much now so thats not a problem.
 
My 80 year old neighbor got skinned on Medicare premiums for a year after a stock sale.
His monthly premiums went from 170 to over 500 a month for a year.
I don't know where that income bracket is .
In the grand scheme that might be pennies.
I have done some research on that recently. I am moving money from my 401k to a Roth IRA since money in the Roth grows tax free and there are no RMD's from a Roth. Of course, any money taken out of the 401k adds to your taxable income in the year of the transfer/conversion. Since the 401k was opened in the early 80's, there is a good bit of money there. How much to convert each year gets into tax brackets, tax rates and also the medicare premium increase.

The SSA uses MODIFIED adjusted gross income to determine your medicare premiums. The Modified means it is your adjusted gross income PLUS some of the deductions added back in. And they use the number from 2 years prior. For 2025 premiums, they look at 2023 modified adjusted gross income (2025 premiums are set in late 2024, so 2023 tax returns are the newest available at the time your premiums are set). For 2025, the base/lowest medicare premium will be $185/month if your 2023 MAGI was $106,000 or less for single filer or $212k for married filing jointly. There are several income steps and premium steps in between, but the highest premium is $629/month for MAGI of $500k or more.
 
It really sucks when an older person that has worked for 50 years and still wants to work some has to watch what they make to keep from being penalized.
Kenny
Any stocks you sell will be taxed at long term capital gains which comes from a different tax chart and none of it counts against your SS. Make sure your broker knows it is being split 3 ways and perhaps he will report it as such to each of you. Otherwise you are considered the nominee and you have to file as it is reported to you and then issue the other two a 1099 for their share from you and file that with the irs. An accountant can help you with that. ALSO remember the cost basis of those stocks is not when he purchased them but the DAY OF HIS DEATH
he only thing that goes into the calculation for SS being taxable is EARNED income which consists of w-2 wages and /or 1099 wages for self employed or if someone pays you that way with no taxes withheld. Worst way to get paid because you wind up paying your side and employers side of taxes.
 
Kenny
Any stocks you sell will be taxed at long term capital gains which comes from a different tax chart and none of it counts against your SS. Make sure your broker knows it is being split 3 ways and perhaps he will report it as such to each of you. Otherwise you are considered the nominee and you have to file as it is reported to you and then issue the other two a 1099 for their share from you and file that with the irs. An accountant can help you with that. ALSO remember the cost basis of those stocks is not when he purchased them but the DAY OF HIS DEATH
he only thing that goes into the calculation for SS being taxable is EARNED income which consists of w-2 wages and /or 1099 wages for self employed or if someone pays you that way with no taxes withheld. Worst way to get paid because you wind up paying your side and employers side of taxes.
Thank you. I do some self employment work on hurricane response and yes it cuts a lot.
 
the cost basis of those stocks is not when he purchased them but the DAY OF HIS DEATH
Correct. And if you don't sell and hold onto the stocks for some time, then the cost basis changes to the original purchase price.
 
couldn't you all open an account with the same brokerage and then have the stocks split up into each account. That way if one of you don't want to sell your share of the stock you don't have to.

That is what was done with my grandparents stock account. If I remember it work fairly well.
 
Correct. And if you don't sell and hold onto the stocks for some time, then the cost basis changes to the original purchase price.
Not true. The basis will never revert to the original purchase price.

The basis is either established as the fair market value (FMV) of the property on the date of the decedent's death,
or the FMV of the property on the alternate valuation date, if the executor of the estate files an estate tax return (Form 706) and elects to use the alternate valuation on that return.

That value never goes back to the decedents cost. Your capital gain (or loss) would be based on the difference between the price received when sold, and the FMV on the date of the decedent's death. If the estate was over a certain dollar amount, an estate tax will have already been paid out of the estate, to the IRS (and possibly to the State if required), when the estate was settled. You said this was about 15 years ago. In 2009 estate taxes were on assets valued at over 3.5 million.

Your income when you sell could trigger an increase in your part B medicare insurance premiums for the year of the distribution, if your modified adjusted gross income goes beyond $103,000 for a single person or $206,000 for a couple filing jointly.

Right now the first 13 million is exempt from federal estate tax, but that is set to sunset at the end of 2025. Each state varies in how they handle estates with most having no estate tax, but 12 states do impose additional estate or inheritance taxes. Oregon is the worst at 1 million. Land prices have exploded in the last 15-20 years, and most ranches that were valued at substantially under 1 million when purchased are now likely to be lost to estate taxes when the current operator passes on.
 
couldn't you all open an account with the same brokerage and then have the stocks split up into each account. That way if one of you don't want to sell your share of the stock you don't have to.

That is what was done with my grandparents stock account. If I remember it work fairly well.
I will ask
 
YOU MAKE A PROFIT? 😂

Our tax laws are so much different but I would definitely look into spending what you have to on cattle or anything else to keep your money.
 

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