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Re: Share your fears about Social Security

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END OBAMA'S CUTS NOW!!!
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Re: Share your concerns about Social Security

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@k212924swrote:

I received a back award of 35000, on my social security disability ward plus my monthly payment. I am being taxed on $ 55000. I'm scared to death to get my taxes done. I wasn't aware that I would have to pay taxes on this income


I came back to tell you specifically what the IRS says about your problem and the options they give you to figure any tax that might be due, if any.

 

IRS - FAQ on Taxing of Back Payments of Social Security benefits

 

You DO NOT have to file amended returns but you must use the LUMP SUM ELECTIONS method of figuring any tax is due.

 

Go to IRS Publication 915 and then scroll down to the highlighted term LUMP SUM ELECTION for complete instructions on completing the worksheet.

 

IRS - Publication 915 - Social Security Benefit (Taxation Worksheets)


* * * * It's Always Something . . . Roseanne Roseannadanna
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Re: Share your concerns about Social Security

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@k212924swrote:

I received a back award of 35000, on my social security disability ward plus my monthly payment. I am being taxed on $ 55000. I'm scared to death to get my taxes done. I wasn't aware that I would have to pay taxes on this income


In a nutshell - you may or may not be taxed on some or all of your SSDI benefit because the the amount of your benefit that is taxable depends on how much you have in other income.

 

However, in your case since it was a back award - did this amount cover several years?  You may have to go back and amend old returns - consult an IRS Certified Enrolled Agent or a Tax Professional.

 

IRS - Regular Social Security and Social Security Disability Income - FAQ

 

Social security benefits include monthly retirement, survivor and disability benefits.

 

The net amount of social security benefits that you receive from the Social Security Administration is reported in Box 5 of Form SSA-1099, Social Security Benefit Statement, and you report that amount on your income tax return (Form 1040, line 20a or Form 1040A, Line 14a).

 

The taxable portion of the benefits that's included in your income and used to calculate your income tax liability depends on the total amount of your income and benefits for the taxable year. You report the taxable portion of your social security benefits on Form 1040, line 20b or Form 1040A, line 14b.

 

To find out whether any of your benefits may be taxable, compare the base amount for your filing status with the total of:

  • One-half of your benefits; plus
  • All of your other income, including tax-exempt interest.

The base amount for your filing status is:

  • $25,000 if you're single, head of household, or qualifying widow(er),
  • $25,000 if you're married filing separately and lived apart from your spouse for the entire year,
  • $32,000 if you're married filing jointly,
  • $0 if you're married filing separately and lived with your spouse at any time during the tax year.

If you're married and file a joint return, you and your spouse must combine your incomes and social security benefits when figuring the taxable portion of your benefits. Even if your spouse didn't receive any benefits, you must add your spouse's income to yours when figuring on a joint return if any of your benefits are taxable.

 

 


* * * * It's Always Something . . . Roseanne Roseannadanna
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Re: Share your concerns about Social Security

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@k212924s

I suggest you visit the IRS web site and look at, Social Security Benefits Worksheet. Use this link below. 

 

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf   (See Page 30)

 

IRS   https://www.irs.gov/

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Re: Share your concerns about Social Security

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I received a back award of 35000, on my social security disability ward plus my monthly payment. I am being taxed on $ 55000. I'm scared to death to get my taxes done. I wasn't aware that I would have to pay taxes on this income

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Re: Share your concerns about Social Security

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On the monies going out - I am confused: How many folks are collecting Social Security Disability dishonestly? This includes those billboards in West VA whereby a lawyer offers to help people collect (hmmmm) to illegal immigrants coming in and getting on disability (can they?). I saw a YouTube called: Dearborne Michigan about all the (HAPPENS to be Moslems) coming here and going on Medicaid and Social Security, have 5 kids, driving Mercedes, refusing to learn the language....

 

SO QUestion: as we being taken for fools? I ASK this as I learn corporate America has massive age discrimination, I can NOT get hired back into my old career parth (this started at age 58 and I'm now 63) and so LOOKING at filing....to learn that BECAUSE Social Security is going broke, our professional career politicians passed something in the cloak of night that IF I make OVER poverty level, I have to pay BACK $1 for every $2 of social Security benefits I earn. REALLY? THIS IS EVIL, malfeasance, dispictable.....(BOTH sides of the aisle have allowed this - our "Professional Career politicians" ALL prance away multi-millionaires with guaranteed lifetime pensions and healthcare WHILE compromise OUR quality of income in old age???? Very angry. 

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Re: Share your concerns about Social Security

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If you are fully vetted in STRS and your retirement will be a "decent" amount... (usually somewhere about 50% of what you were earning as a full time teacher if you have 25 to 30 years in)  then your Social Security earnings  will be reduced by 75%.  It is all confusing, because the amount you earn and the number of quarters in SS determines the amount.  I believe you can go to a Social Security Office and present your information ahead of time, and they should be able to give you a reasonable estimate.  California teachers are the only ones who cannot receive what everyone else does... if you worked for the Fed's or Per's you can receive your full amount of Social Security.  I thought about going back to work to earn more quarters (as I didn't have the minimum) to strengthen my teacher retirement, but after looking at it and doing a little arithmetic... I found it much more profitable to teach part time (a college class or two online...) than work all that time for maybe $107 a month in additional retirement.

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Re: Share your concerns about Social Security

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@w444315k  Have you visited the Social Security website and created an account?

 

You asked, "Anyone have an educated guess what my ss payout would be???". You may want to look at this and see if it helps.

https://www.ssa.gov/retire/estimator.html

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Re: Share your concerns about Social Security

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I agree.  I taught in California and just went to the retirement seminar and was surprised to learn that my SS benefit will be reduced.  We are the only ones in this category.  

My main concern is that I plan to work in a different field, have not contributed to SS since I was in my mid 20's.   My benefit is going to be around $175/mo. without added contributions and I am curious what/how much it will increase/be affected by added contributions.

 

I believe I will earn about 25,000 annually for another 7 or 8 years.  * I retired early from teaching and will delay my payout from State Retirement in order to max it out- thus the need to keep working.

 

Anyone have an educated guess what my ss payout would be???     thanks

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Re: Share your fears about Social Security

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Look into the "Extra Help" benefit with Medicare. Depending on your income (mine wwas less than $800) you can qualify to get your Part D premiums paid for and a BIG reduction on your drug costs. Mine are $3.30 for generic and I think, $8.00 for brand names. I got a refund check on a generic that was costing me $104.30. Now it is $3.30!!! Easy to apply, do it online and hear back in less than a month. It is retroactive to time you applied, so hence, the refund. Recycled to medical bills but very welcomed boost.

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