What differences are there in reporting my retirement income and my income during my work career? When you received your Form W-2 prior to retirement, you reported your wages on an individual income tax return, such as Form 1040. You also may have received self-employment income on Form 1099-MISC, Miscellaneous Income. You reported your income by attaching a Schedule C or C-EZ to your Form 1040 and your self-employment tax on Schedule SE. After you formally retire, you would do the same if you continue to receive these types of incomes.
When retired, you may receive a Form SSA-1099 for social security and/or a Form 1099-R for pension income, in addition to wages or self-employment income. These types of retirement income are reported on either the Form 1040 or 1040A.
What types of income are taxable? The types of income which are taxable include (but are not limited to) military retirement pay, all or part of pensions and annuities, all of part of Individual Retirement Accounts (IRAs), social security benefits that exceed the base amount for the filing status, unemployment compensation, gambling income, bonuses and awards for outstanding work, alimony, and prizes.
What types of income are nontaxable? Some income is not subject to tax. A few examples are veteran's benefits, disability pay for certain military or government related incidents, worker's compensation, and cash rebates from a dealer or manufacturer of an item you purchase. Why are my pension and social security taxed? Your pension could be fully or partially taxable depending on how the money was put into the pension plan. If all the money was contributed by the employer or the money was not taxed before going into the plan, it would be taxable. When your contribution to the plan is from already-taxed dollars, that part is not taxed, but must be recovered over your life expectancy. There are worksheets in the instruction books for versions of Form 1040, including Form 1040A. Social security can be either not taxed or partially taxed, depending on your other income and filing status.
See you at the Center.
Meals
Jan. 18 - Jan. 24
Friday - Country sausage, whipped potatoes, sauerkraut, green beans, plums.
Monday - Chicken parmesan, brown rice, baked squash, cranberry juice, cooked apples.
Tuesday - Pork chops with celery sauce, mashed potatoes, green bean casserole, tropical fruit.
Wednesday - Barbecue beef on a bun, parsley carrots, potato salad, lime sunshine salad, seasonal fruit.
Thursday - Roast turkey, mashed potatoes, gravy, broccoli, pears, cranberry sauce.
Activities
Jan. 18 - Jan. 24
Friday - Aerobics 9 a.m., Computers 10 a.m.- noon, Bingo/ Pool Tourney 12:30 p.m. Bus trip to Minot.
Monday - Aerobics 9 a.m., Computers 10 a.m.- 3 p.m., Choir 12:30 p.m., Pool/T.V. 12:30 p.m.
Tuesday - Aerobics 9 a.m., Computers 10 a.m.- noon, Pinochle/Whist 12:30 p.m.
Wednesday - Aerobics 9 a.m., Arts/ Crafts 10 a.m., Pool /TV 12:00 p.m., Computers noon. Golden Age, Blood Pressures
Thursday - Aerobics 9 a.m., Card Making 10 a.m., Computers 10 a.m.- 3 p.m., Pinochle Ladies noon-3 p.m., T.V. 12:30 p.m.
All services provided by the Williston Council for the Aging are available to eligible persons regardless of race, religion, color, national origin, or handicap.
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