How does trading income affect Social Security benefits that are being paid?

Discussion in 'Professional Trading' started by BCE, Nov 24, 2010.

  1. BCE


    I'm just wondering how trading income affects social security payments. That is, when you retire how will whatever money you make trading affect the benefits you are collecting? I'm not talking about how money you make now will affect your future benefits, but how money you make while collecting benefits will affect your benefits payment. I see that capital gains don't count, but what about trading futures for instance? Thanks.
  2. The key here is "Earned Income"...
  3. the1


    Correct. You could generate a gazillion dollars of capital gains profits and it would not affect your SS bennies. Just be careful about that earned income. Not too many hours greeting customers at Walmart :D

  4. JackR


    Not quite earned income - it is Adjusted Gross Income. The Social Security benefit (payment) based on your lifetime earnings is not affected. However, the amount you pay for Medicare, Parts B and D may be affected, effectively lowering the payment.

    Once your income hits $85,001 there are a number of rather steep step-increases in the insurance premiums you pay. The steps are based on adjusted gross income (AGI) and a glorious new feature starting next year - IRMAA.

    The Internal Revenue Service supplies your tax filing status, your adjusted gross income, and your tax-exempt interest income to the Social Security Administration to determine if you have an income related monthly adjustment amount (IRMAA). The Social Security Administration will add your adjusted gross income together with your tax-exempt interest income to get an amount called the modified adjusted gross income (MAGI)


  5. Bob111


    what benefits? in order to receive SS benefits you have to pay SS taxes...and you not paying SS tax on your capital gains..dunno,but my SS score doesn't change for obvious reasons since i left my job.. in fact-i'm no eligible to any SS benefits according to this score paper from SS administration..
  6. J.P.


    Interesting; I didn't know that. Thanks, Jack, for that post and link.
  7. BCE


    Thanks guys for the info. I don't have time to get into it just this second, but I'll read it later. If anyone else has more info please feel free to chime in. :) Happy Thanksgiving!
  8. 007Arb


    What it could effect is the potential taxes you have to pay on your SS benefits.