What the Government Shutdown Means for You! Which Federal Government Services Will Be Affected? Read More

Reply
Highlighted
Info Seeker

Re: Social Security/New tax bill

1,661 Views
Message 1 of 17

We are definitely justified in arguing that we should never be taxed twice on any portion of our income.  And yet, this deceitful act by the federal government is not just limited to levying a tax a second time on our SS income, there are many in congress looking at ways to do the same with our money that we pay in state income taxes.

 

Furthermore, as it appears we retirees are still in the dark regarding taxation of our SS benefits under the new IRS tax laws, why does our AARP not come forth and provide this information for us?

I think we should expect more for our membership dues on this matter than just a forum for sharing our frustrations.  At the very least, we need to be kept in the loop.  And, has our AARP done enough to represent us as retirees and future retirees before congress?  Am I alone in this point of view?

Report Inappropriate Content
Info Seeker

Re: Social Security/New tax bill

16,172 Views
Message 2 of 17

Thanks for that info, I pay the tax every year and always got a tad annoyed since I thought it was income taxes paid again on it

Report Inappropriate Content
Info Seeker

Re: Social Security/New tax bill

19,476 Views
Message 3 of 17
If mine turnout the same as yours, I am going to set aside the windfall from 2000 checks and by a used car.
Report Inappropriate Content
Valued Social Butterfly

Re: Social Security/New tax bill

20,751 Views
Message 4 of 17

jk1920 wrote:

. . . .  Under current tax law Taxes on Social Security retirement benefits are based on what is commonly referred to as your provisional income.  Provisional income encompasses your adjusted gross income + Tax-exempt income (i.e., income from municipal bonds) + 50% of your SS benefits.  For married persons filing jointly if your provisional income is less than $32,000 your SS income is tax free.  From $32,000 to $44,000 up to 50% of SS income is taxable.  More than $44,000 and 85% of SS income is taxable. Hopefully, this special treatment of SS benefits will be a part of the new tax bill.  I realize that hope is for fools and children.  If special consideration of SS benefits are not part of the new bill we need to vote those who supported this out of office.  We seniors have the political power to do it!


Even though this tax on Social Security benefits, for certain people based on income, is complete during your Federal Income filing, it is actually NOT an income tax, it IS a Social Security tax.  What is paid, by those who have to pay it, goes directly into the Social Security Trust Fund just like payroll taxes.

 

It is an additional amount paid to Social Security to keep the program running.

Thus, it isn't a tax matter but is a Social Security matter.  Pull it away and the Trust Fund insolvency comes earlier - currently the date is 2034.

 

This is similar to people with higher incomes paying a MUCH higher Part B premium - the IRMMA ( Income Related Medicare Monthly Adjustment), which goes into Medicare to help it keep running along with payroll taxes.

 

If we want to keep these programs, there may be more such sur-taxes/sur-charges coming down the pike cause the current rate of payroll taxes ain't gettin' it.

 

So don't look for this taxation of SS benefits to go away but it can always be modified so that more people have to pay it.  To take one for the team, so to speak !!

Report Inappropriate Content
Valued Social Butterfly

Re: Social Security/New tax bill

20,991 Views
Message 5 of 17

@l107489h  Should've vs Should of

AARPShouldOfvsShould've.JPG

 

 

 

 

 

Report Inappropriate Content
Valued Social Butterfly

Re: Social Security/New tax bill

21,116 Views
Message 6 of 17

The guessing is over, I will get $7.20 more in my next SS check for Jan. 2018.

Report Inappropriate Content
Info Seeker

Re: Social Security/New tax bill

21,685 Views
Message 7 of 17
IN THE U.S. ENGLISH DICTIONARY, THERE IS NO PHRASE SUCH AS SHOULD OF. IT'S SHOULD'VE.
I LEARNED THAT IN 4TH GRADE.
Report Inappropriate Content
Conversationalist

Re: Social Security/New tax bill

22,809 Views
Message 8 of 17

So it looks like if nothing changes that my taxes will be 50% or maybe 0% if my adjusted gross income is below $32,000 for the SS. Sounds like I should of been an accountant for a living lol. Just hope we do not lose this with the new tax bs.

Jim

 

Report Inappropriate Content
Info Seeker

Re: Social Security/New tax bill

22,843 Views
Message 9 of 17

Thanks for asking this question. No one seems to be asking this question which should be our primary concern.  I have not seen anything that addresses this.  Under current tax law Taxes on Social Security retirement benefits are based on what is commonly referred to as your provisional income.  Provisional income encompasses your adjusted gross income + Tax-exempt income (i.e., income from municipal bonds) + 50% of your SS benefits.  For married persons filing jointly if your provisional income is less than $32,000 your SS income is tax free.  From $32,000 to $44,000 up to 50% of SS income is taxable.  More than $44,000 and 85% of SS income is taxable. Hopefully, this special treatment of SS benefits will be a part of the new tax bill.  I realize that hope is for fools and children.  If special consideration of SS benefits are not part of the new bill we need to vote those who supported this out of office.  We seniors have the political power to do it!

Report Inappropriate Content
Conversationalist

Re: Social Security/New tax bill

23,545 Views
Message 10 of 17

I want to retire next year(63), but all this is too scary with the new tax plans. My wife is now end stage renal disease and I wanted to be not working when we had to get her a new kidney. Now all looks to be doom and gloom. Probably have to retire now when I am 70. My job has a decent health/rx/eye/dental family plan. Of course she is now on Medicare also, to pay the approximate one million a year for treatment. All this talk about Medicare cuts is just frustrating and scary. I will be getting approximately $37,000 a year with 2 pensions and social security. It seems that tax bracket is vunerable now and we will just help the corporations and ultra rich get even richer. Maybe that is just all talk though. I wish politicians would stop playing chess with our lives.

Jim

 

Report Inappropriate Content