Recharge Your Job Search in 2018. AARP Foundation Can Provide You With Resources and Training. Learn More

Reply
Info Seeker

Re: Social Security/New tax bill

23,281 Views
Message 11 of 17

I haven’t seen anything either.. even if it stays the same, any increase in taxable income will possibly double % on the tax line under the current system

Report Inappropriate Content
Valued Social Butterfly

Re: Social Security/New tax bill

10,787 Views
Message 12 of 17

@cat0w

 

I don't believe that you are counting an increase in your Part B premiums for 2018 if they are now less than $134 per month.

 

They have not officially announced the premiums for Part B for 2018 but the Trustees and various media outlets are prophecizing that the rates for most everybody will rise to that level because that is what newly enrollees are paying in 2017 and with that 2% COLA scheduled for next year, it will remove many beneficiaries from the "hold-harmless" Social Security provision.

 

So that 2018 increase may dwindle down to cover an increase in Part B premiums.

 

Regardless of how the COLA is figured, if each COLA is eaten up by higher Part B premium hikes cause the increases would still consider the Social Security hold harmless clause.

Report Inappropriate Content
Valued Social Butterfly

Re: Social Security/New tax bill

7,811 Views
Message 13 of 17

@lorrainel802492  How would this affect the COLA. As long as the increase stays at 2% that means I should see around a $30.00 increase to my Social Security. I already know that my Medicare Advantage insurance plan has gone down by $2.00 a month for next year. I also have a set percentage for being withheld for taxes this may increase a small amount but I should still come away with a little more money in my SS Check.

Report Inappropriate Content
Info Seeker

Re: Social Security/New tax bill

6,670 Views
Message 14 of 17
It changes the way your COLA is calculated + it'll decrease your Social security check. https://newrepublic.com/article/145688/biggest-trojan-horse-republican-tax-plan
Report Inappropriate Content
Valued Social Butterfly

Re: Social Security/New tax bill

6,846 Views
Message 15 of 17

For me, I think it is a wait and see as to what gets passed and signed into law. What tax bracket will I fall under, will the deduction for being born before January 2, 1952 still be there, increasing the standard deduction? For now this is an unknown.

 

Looking at my taxes from last year, if, the standard deduction is doubled and that's all I have to use then my taxes would stay probable the same unless the tax bracket I end up in helps lower it.

 

Nov.4,   I will add this link, Tax Plan Changes , that I found by doing a Google search. It explains more and shows the percentage of the new tax brackets and the amount of income covered under each.

Report Inappropriate Content
Info Seeker

Re: Social Security/New tax bill

6,762 Views
Message 16 of 17

My taxes would go up $219.26 because of the loss of the $4,050 personal exemption.  Also, with my medical/LTC/charitable/Real Estate Tax deductions, I am already close to $11,000 itemized deductions.  The new tax plan is worse for me.

Report Inappropriate Content
Info Seeker

Social Security/New tax bill

6,286 Views
Message 17 of 17

How does the new tax bill affect the income tax on Social Security benefits? Has the formula changed or is it the same?  Have not seen anything addressing this, a subject that will affect millions of senior citizens.

Report Inappropriate Content