Submitted By: Janice
Answered: July 8, 2014 8:30 am

Are wages earned by someone who is age 65 or older tax free?

Earned income remains taxable regardless of age. Similarly, such income continues to be subject to Social Security and Medicare taxes (FICA for an employee; self-employment tax for a self-employed person). The one age-related break: once a worker reaches the full retirement age (currently 66), then he/she can have any amount of earned income without a reduction or complete loss of Social Security benefits.

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Tax Glossary

Trust

An arrangement under which one person transfers legal ownership of assets to another person or corporation (the trustee) for the benefit of one or more third persons (beneficiaries).

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