Yes. Up to 85% of the social security will be taxable.
Thanks for the info. Finding answer on the Government site for little stuff like what is considered income is hard to find on the Government Website. I am sure it's there just don't know where to look.
The taxability is an IRS rule. Not an SSA rule.
It’s difficult. But I Googled it (seriously better than tax research software in a lot of cases for a CPA), and the IRS worksheet specifically included taxable pension benefits in the taxability worksheet.
Does this help? It mentions pension payments.
They don’t affect the amount of your benefits. They do affect the taxability of your benefits. It’s more complicated than it should be.
So that is talking about earned income penalty and not the 0/50/85% taxability depending on the amount of taxable income received?
Right. Like I said it’s complicated. And nothing compared to how complicated Medicare is. I tried to help my mom with hers a few months ago & im completely lost as to what the best choices are. The fact we expect elderly people to navigate this maze is inexcusable.
One of the biggest rip off scams there is.
A lot of reasons. One of which is both of those are very bad ideas to begin with.
Votes. Most people aren't high income. They tend not to vote in a regressive tax on their lower incomes. Even if you did manage to implement one, it would also need a tax return system as you wouldn't want those taxes applied towards your poverty level of income/spending to offset some of the regressive nature. That or we mail checks to everyone to credit them back that amount - that's a bad idea also.
22 years ago, I sold Medicare Supplements. Things have changed but I had to help my parents and still had people I could ask questions. I ended up putting it in simple terms. If you are in good health and don't go to doctors to often get a Medicare Advantage. If you are in bad health and go to doctor a bunch, get Medicare Supplement. Rationale was Advantage plans have high deductibles and lower premiums and Supplements have really low to zero deductibles but higher premiums. Once I got it to that point, we started looking for the agent, company and plans they felt comfortable with. My mom will never leave her house alive again. She is near death. My dad is in good health so we had to find some insurance he could afford for eyes, dental and hearing. We found a plan that had a pool of money of 5000.00. He could use it for any of the three each year until depleted then the next year it will replenish the 5000.00. $53.00 a month premium. That seemed reasonable.
and I GUARANTEE if you called them and talked to 4 different people you would get 4 different answers....
Probably. I would imagine folks at SSA do not understand the taxability of it.
Your pension is not taxed in MS. However, the fed will take its share of your pension and your SS benefit. Consult with a reputable CPA or CFP (certified financial planner) to determine actions you can take to reduce your tax liability. Do not consult with a public accountant or shade tree tax preparer.
It was not for me or anyone I know. It was just general question that I will have in future. Several of the guys who responded are CPA's. I got my answer.
Patdog that’s the dialogue I was hoping for. I haven’t done any research on either, just know they have been political hot points. Why do you think they are bad ideas? I don’t have an opinion either way, I just want to pay less tax. Look forward to your thoughts if you are willing to share
Just a couple off the top of my head:
What would the ckdog tax code look like? Curious as to your thoughts. I haven’t done much research just wish I paid less tax. Just looking for some dialogue on the subject.
Mine: eliminate the SS cap, split the revenue gains to cutting the rate and shoring up SS.
The devil is in the details with anything and this topic could fill volumes of analysis.
