IRA withdrawl
Best Answer
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Hi CoCo,
If you are withdrawing from a traditional IRA (that you did not previously make nondeductible contributions to), your IRA distribution amount will be taxable.
Your Social Security income may be partially taxable, depending on the amount of your total income for the year. We don't provide tax planning services, so we cannot do those calculations for you, but I'm happy to give some information about how Social Security benefits are taxed.
Essentially, the IRS states that if your income is too high, then part of your Social Security benefits may be taxed. Specifically:
"Your benefits may be taxable if the total of (1) one-half of your benefits, plus (2) all of your other income, including tax-exempt interest, is greater than the base amount for your filing status.
The base amount for your filing status is:
- $25,000 if you're single, head of household, or qualifying surviving spouse"
With that in mind, remember also that the standard deduction for 2025 is $15,750 for single filers. That means that $15,750 of your "taxable income" will not actually end up getting taxed. Additionally, the One Big Beautiful Bill Act (OBBBA) added an additional $6,000 deduction for seniors over age 65, which means that another $6,000 of your income will not be taxable. For more information on this change, please see:
This should give you enough information to get a good idea of the amount of income you can take out of your IRA without needing to pay tax on your income. Additionally, when our 2025 software is released (usually in November or December), you can log into 2025 and put in your estimates to get an idea of what you can expect when it comes time to file. Just remember to update your information to your actual income and forms before you submit your 2025 return next year.
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