In addition to the informative links provided below, WalkerCPG has a platform of professional-level calculators enabling us to provide in-depth analysis and recommendations to Maximize one's Social Security Benefits. WalkerCPG works with you to maximize your benefit with this software while analyzing the ideal time to start your Social Security Benefit payments based on your situation and needs.
Provisional Income and Social Security Taxation
Without careful planning, a large Provisional Retirement Income can erode the net benefit provided by Social Security. When provisional income crosses certain thresholds, it exposes a larger portion of one's Social Security Benefit to Income Taxation. Learn more about the Provisional Income limits and strategies used to protect one's SS Benefit from higher tax with-holdings. With proper planning, preparation, and positioning, it is possible to capture a much larger portion of the SS Benefit earned throughout one's working years.
Definition of 'Provisional Income'
The level of income that is used to determine whether a taxpayer is liable for tax on his or her Social Security benefits, and by how much. Provisional income is calculated by making certain adjustments to the taxpayer's gross income.
Calculate Provisional Income
Provisional income =
- gross income
- + tax-free interest
- + 50% of Social Security benefits
- + any tax-free fringe benefits and exclusions
- - adjustments to income (except for the student loan deduction, tuition and fees deduction or domestic production-activities deduction)
Windfall Elimination Provision (WEP)
A possible offset to the amount of one's Social Security benefit intended for Retirees that have a pension based on earnings which were not covered by Social Security (like CSRS). If Social Security wasn't withheld during your Federal employ the WEP can impact the amount of your Social Security benefit that would have been awarded. Learn more about the impact of the WEP on your Social Security Benefit with the educational links and SSA Calculators below.
Government Pension Offset (GPO)
GPO - The Government Pension Offset is a Social Security provision that penalizes individuals who apply for Social Security spousal or survivor benefits, if they themselves worked for a state or local government in non-SS-covered employment and are entitled to a government pension from that employment. Once they receive that benefit, their earned Social Security spousal or survivor benefits will be reduced by two-thirds of their non-SS-covered pension.