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aarp10
Contributor ⭐
May 11, 2024

Social Security Benefits

  • May 11, 2024
  • 12 replies
  • 4474 views
 
A bill was recently introduced in the House by Rep. Angie Craig (D-Minn) called "You earned it You keep it". It would eliminate federal taxes from Social Security wages. A windfall for most retired people a great help in these trying times. What is AARP's stand on this not sure? What is your Representative's stand maybe time to ask? Time for the senior citizens voice to be heard. Why are all tax regulations aimed at businesses and the wealthy?  Seniors have been paying taxes for a long time. If you agree let's hear your opinion!

Ray G

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      12 replies

      cat0w
      cat0w
      Conversationalist ⭐⭐⭐
      May 12, 2024

      I would like to see a bill like that passed.

       

      What do you mean by, " Why are all tax regulations aimed at businesses and the wealthy?" Do you mean, aimed at helping?

       

      I also hope that the Trump tax cuts are made permanent.

       

      Border Collie and God Bless America

        P
        PaulR456348
        Contributor ⭐⭐
        May 12, 2024

        That bill needs to be passed. I had to pay 4000 dollars of my SS income for 2023. I only made 60K total combined and paid a total of 10K federal. If my SS wasn’t taxed I would pay nothing but the 6K I withheld. 

        T
        Tonster521
        Community Champion ⭐
        May 17, 2024

        @PaulR456348 I am unable to follow your math. I work with taxes for folks with various income amounts and cannot arrive at $10,000 of federal tax on $60,000 of income. I reduced the $60,000 by the Standard Deduction (i.e., $13,850 single 2023) which leaves $46,150 as taxable income. The first tax bracket is 10% up to $11,000 ($1,100). The next bracket is 12% from $11,001 to $44,725 (4047). Your next bracket is $44,726 to $46,150 ($314). I rounded any change to the next whole dollar and arrive at a total tax amount of $5,461 for 2023. If you had already deducted the Standard Deduction ($13,850) to arrive at $60,000, your combined income will increase by $13,850 to $73,850. And your amount of federal taxes would be $8,508 based on $60,000 of taxable income instead of $5,461 based on $46,150 of taxable income. How did you arrive at $10,000 of federal taxes?

          P
          PaulR456348
          Contributor ⭐⭐
          May 17, 2024

          My total income without deduction and SS is 

          $64,100
          If you add my SS at 85% it would be $22,317 additional income 
          So the total is $86,417 
           
          Deduct the standard deduction of $16550 = $69,867
          Based on the tax table for single it is $5146 first $47150 and 22% over that. 
           
          So subtract $47150 from my taxable income of $69,867 = $22,727 x 22% = =$4997 + $5146 = $10,143 is what I owe 
           
          Fed Taxes withheld are $5,918 I end up writing a check to the US treasury for $4,225 
           
          My complaint is not owing but why should I pay 85% it should only be 50% because that would be on the employer contribution. 
          Change  the formula to 50% and I end up owing $2,204 big difference 
           
          The key is not taxing what I’ve already been taxed. The thresholds are certainly wrong as well. Come on, over $34,000 becomes taxable. The law was in 1983 it is over 40 years old. 
           
          It is ridiculous. I will vote for the party  that wants to change that. 
           
          Paul 
            WebWiseWoman
            WebWiseWoman
            Community Champion ⭐⭐⭐
            May 17, 2024

            I'd like to interject something that has affected folks known to me for decades... 

             

            In the mid- to late- 80s, a couple I knew, both business owners and millionaires in their own rights, reached full retirement age. Both were survivors of mates who passed from cancer and found each other following those deaths.

             

            They each, as the time came, requested to not receive SS retirement benefits; each was advised that wasn't possible per regulation at the time (I don't know if that has changed).

             

            They chose to donate that social security retirement income to charities; that actually made them feel worse as they could deduct those donations; they chose not to use as deductions.

             

            Perhaps the regulations have changed? If not, maybe that's what needs to be addressed?

             

            just mho...

            P
            PaulR456348
            Contributor ⭐⭐
            May 17, 2024

            I Totally agree.

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