Social Security heads up

[muzzlebrake]

For people drawing the rocking chair money you may want to be aware that the propose SS increase scheduled to be announced this week could put you into a tax bracket that you may not be currently tied to. 8.7% increase will put many SS recipients over the $25k mark and will require you to file income tax.
If you will be getting over $2083.33 per month then you will be screwed. AGAIN! Estimates are that as much as 37% of people now on SS and not having to file income tax will now have to file and could affect up to 85% of your SS income.
Thanks Biden.

I haven't had to file since I retired in 2011 but now I will if the raise comes thru and there is no way to decline the increase. Just another way to steal retirees money.

[47]

But they'll leave all that out and simply pat themselves on the back proclaiming they have finally given seniors a long overdue benefits increase.

Right on time for mid terms.

[91cavgt]

Yeah, let’s tax the money that has already been taxed, so when they get the money they can pay taxes on anything that is bought with the money that was already taxed.


Just another way to decrease the amount of money those living on it need.

[imyomama]

my dad was kicked out of his senior living apartment , his income was $500 a year too much due to some increase he got is ss ,he no longer qualified to live there.. they gave him 30 days to get out.. so much for taking care of the elderly.

[WItoTX]

Correct me if I'm wrong, but I'm pretty sure only the amount above 25k is taxed. Not the whole thing. Are you not filing taxes every year anyways?

[Shane]

For people drawing the rocking chair money you may want to be aware that the propose SS increase scheduled to be announced this week could put you into a tax bracket that you may not be currently tied to. 8.7% increase will put many SS recipients over the $25k mark and will require you to file income tax.
If you will be getting over $2083.33 per month then you will be screwed. AGAIN! Estimates are that as much as 37% of people now on SS and not having to file income tax will now have to file and could affect up to 85% of your SS income.
Thanks Biden.

I haven't had to file since I retired in 2011 but now I will if the raise comes thru and there is no way to decline the increase. Just another way to steal retirees money.

It's not as bad as you think, actually. But you're correct that the increase could kick some people into owing tax when they didn't before. But the calculation doesn't work the way you state (good news).

You don't count all of your Social Security income. You count 50% of your Social Security income. Add that to all your other taxable income for the year to get your "combined income" figure to determine if you owe tax on any of your SS income.

If you're single, you may owe tax on up to 50% of your SS income if your "combined income" is between $25K and $34K. If your combined income is over $34K, you may owe tax on up to 85% of your SS income.

If you're married filing joint, you add up 50% of both spouses' SS income to both spouses other taxable income to get the couple's "combined income". You may owe tax on up to 50% of your combined SS income if your "combined income" is $32K to $44K. If your "combined income" is above $44K you may owe tax on up to 85% of your SS income.

https://www.ssa.gov/benefits/retirement/planner/taxes.html

It still sucks to owe tax, especially on SS income that you paid for in taxes while you were working. But maybe the coming benefit increase won't create a tax bill for you?? Just depends on your numbers.

[47]

my dad was kicked out of his senior living apartment , his income was $500 a year too much due to some increase he got is ss ,he no longer qualified to live there.. they gave him 30 days to get out.. so much for taking care of the elderly.

wow...

[91cavgt]

It's not as bad as you think, actually. But you're correct that the increase could kick some people into owing tax when they didn't before. But the calculation doesn't work the way you state (good news).

You don't count all of your Social Security income. You count 50% of your Social Security income. Add that to all your other taxable income for the year to get your "combined income" figure to determine if you owe tax on any of your SS income.

If you're single, you may owe tax on up to 50% of your SS income if your "combined income" is between $25K and $34K. If your combined income is over $34K, you may owe tax on up to 85% of your SS income.

If you're married filing joint, you add up 50% of both spouses' SS income to both spouses other taxable income to get the couple's "combined income". You may owe tax on up to 50% of your combined SS income if your "combined income" is $32K to $44K. If your "combined income" is above $44K you may owe tax on up to 85% of your SS income.

https://www.ssa.gov/benefits/retirement/planner/taxes.html

It still sucks to owe tax, especially on SS income that you paid for in taxes while you were working. But maybe the coming benefit increase won't create a tax bill for you?? Just depends on your numbers.

I’ve had mine taxed at 85% for a few years. It sucks, but there’s nothing that can be done about it.

[SaltwaterSlick]

Just in time!!! I'm 'on start gettin' me some that gubment money in January!! Woop-eee!! I get to sent most of it right back to the gubment!!

Dang demoKrauts always use the "Repusicans are gonna take away your Social Security" scare tactics to seniors when all the while it's THEM that have started takin' it away... Prior to one William Jefferson Clinton, SS gubment money was not taxable income!! Now they give a little increase in SS pay, then up the Medicare cost to get it back... tax it more, or both!!

[Muddy Bud]

That’s what the additional 87k IRS agents are for. To assist the elderly pay their fair share again. This administration makes me sick. FJB and the IRS.

[rtp]

It's not as bad as you think, actually. But you're correct that the increase could kick some people into owing tax when they didn't before. But the calculation doesn't work the way you state (good news).

You don't count all of your Social Security income. You count 50% of your Social Security income. Add that to all your other taxable income for the year to get your "combined income" figure to determine if you owe tax on any of your SS income.

If you're single, you may owe tax on up to 50% of your SS income if your "combined income" is between $25K and $34K. If your combined income is over $34K, you may owe tax on up to 85% of your SS income.

If you're married filing joint, you add up 50% of both spouses' SS income to both spouses other taxable income to get the couple's "combined income". You may owe tax on up to 50% of your combined SS income if your "combined income" is $32K to $44K. If your "combined income" is above $44K you may owe tax on up to 85% of your SS income.

https://www.ssa.gov/benefits/retirement/planner/taxes.html

It still sucks to owe tax, especially on SS income that you paid for in taxes while you were working. But maybe the coming benefit increase won't create a tax bill for you?? Just depends on your numbers.

Question Shane, for income purposes does this include dividend income or not? Im still at least 8 years away from filing for SS but not to early to prepare.

[Texas452]

Just in time!!! I'm 'on start gettin' me some that gubment money in January!! Woop-eee!! I get to sent most of it right back to the gubment!!

Dang demoKrauts always use the "Repusicans are gonna take away your Social Security" scare tactics to seniors when all the while it's THEM that have started takin' it away... Prior to one William Jefferson Clinton, SS gubment money was not taxable income!! Now they give a little increase in SS pay, then up the Medicare cost to get it back... tax it more, or both!!

What ever they accuse republicans of doing they do, from voter suppression to SS.
FJB and all democrats

[Shane]

Question Shane, for income purposes does this include dividend income or not? Im still at least 8 years away from filing for SS but not to early to prepare.

Click the link I posted. I didn’t say it right anyway. I said taxable income, which does include dividends and capital gains. But you also have to include tax free interest as well as everything in your adjusted gross income. Verify everything with your CPA. Don’t take anything I say as tax advice. I’m not a CPA. I didn’t even stay at a holiday Inn last night. [emoji3]

[rtp]

Click the link I posted. I didn’t say it right anyway. I said taxable income, which does include dividends and capital gains. But you also have to include tax free interest as well as everything in your adjusted gross income. Verify everything with your CPA. Don’t take anything I say as tax advice. I’m not a CPA. I didn’t even stay at a holiday Inn last night. [emoji3]

Will do. Just another reason to add to the pile of why I hate our govt. Paying tax on this money in retirement is down right theft.


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[Fused11C]

Having more IRS agents is starting to make more sense now.

For people drawing the rocking chair money you may want to be aware that the propose SS increase scheduled to be announced this week could put you into a tax bracket that you may not be currently tied to. 8.7% increase will put many SS recipients over the $25k mark and will require you to file income tax.
If you will be getting over $2083.33 per month then you will be screwed. AGAIN! Estimates are that as much as 37% of people now on SS and not having to file income tax will now have to file and could affect up to 85% of your SS income.
Thanks Biden.

I haven't had to file since I retired in 2011 but now I will if the raise comes thru and there is no way to decline the increase. Just another way to steal retirees money.