Selling my Main Home
I am considering starting social security in January 2024. Will the sale of my home also in 2024, have any impact on the money I will receive from social security? Thank you
Answers
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Hello, and thank you for joining the community.
It should not make a difference in the social security benefits you are paid. The only affect selling your home could have on social security is if there is taxable income from the sale (the gain is more than 250k or 500k if your are filing as married filing jointly) in which case more of your social security income could become taxable.
Let me know if there is anything else that we can do for you.
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What exactly does that mean? "more of your social security income could become taxable"
I am filing jointly and the gain will be more than $500K. I just want to know what to expect, and if I should wait to collect ss for this reason. Thanks
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The portion of your Social Security Income that would be considered taxable depends on the amount of income you received during the year.
The general rule is that the more income you receive other than SS income, the more of that SS income will be considered taxable. Thus, if your home sale increases your taxable income, that may also increase the portion of your Social Security income that becomes taxable, as PhillipB mentioned.
To see how the taxable portion of your SS benefits is calculated, check out the Social Security Administration website here:
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Is $500K the taxable amount of the gain? Will you not be eligible to exclude up to $500K of the gain for some reason?
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Yes, the gain will be $1 mil, $500K will be taxable.
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Okay, that will make it so your social security will be 85% taxable.
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So, I should probably wait until next year(2025) to start collecting?
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If you are concerned about having more of your SS benefits being taxable, waiting until the year after the sale of your home to begin collecting SS will be beneficial.
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