“If you take SS at FRA (Full Retirement Age) and still work, your SS benefit could be subject up to 85% taxed depending on how much you earn.”
There’s a radio infomercial where the guy is trying to sell retirement planning and says the same thing. He’s doing it to deceive listeners, I suspect you’re just trying to communicate the point...but it comes out meaning something else.
In actuality, your benefit is not taxed at 85% (as implied), but rather 85% of your benefit is subject to federal income tax. So if you get $1000 from SS, you don’t pay $850 in taxes, rather your reported taxable income goes up by $850, and thus you pay maybe $200 in income taxes (if in 22% bracket). Big difference.
thanx
SSA has it wrong then
https://www.ssa.gov/planners/taxes.html
file a joint return, and you and your spouse have a combined income* that is
between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits.
more than $44,000, up to 85 percent of your benefits may be taxable.