Question: Should Income Tax Be Paid on Social Security?

Vanity: jonrick46 | February 14, 2022 | jonrick46

[jonrick46]

Should Income Tax Be Paid on Social Security?

[mfish13]

Joe Biden voted for the tax.

[I got the rope]

I’ll say it. Wages are not income.

[I got the rope]

I’ll say it. Wages are not income.

[Osage Orange]

401K ??

Ha!! I had a person who hunted me down for like three years at the Company I worked for...that wanted me to open a Vanguard 401k.

Told her nope, 3 or 4 times. She badgered me to know "Why are you NOT "investing" in this 401k?"

I told her because I do what I WANT..and not what YOU want.

I've traded stocks for years...and I can get in and out...with a click. IRA's cannot do that...

I get everyone can't actively trade. I get it....but this woman was relentless..But I never folded.

[stylin19a]

It is...kind of

https://www.irs.gov/newsroom/dont-forget-social-security-benefits-may-be-taxable
>
To find out if their benefits are taxable, taxpayers should:
Take one half of the Social Security money they collected during the year and add it to their other income.
Other income includes pensions, wages, interest, dividends and capital gains.

-If they are single and that total comes to more than $25,000, then part of their Social Security benefits may be taxable.

-If they are married filing jointly, they should take half of their Social Security, plus half of their spouse's Social Security, and add that to all their combined income. If that total is more than $32,000, then part of their Social Security may be taxable.

Fifty percent of a taxpayer's benefits may be taxable if they are:
-Filing single, single, head of household or qualifying widow or widower with $25,000 to $34,000 income.
-Married filing separately and lived apart from their spouse for all of 2019 with $25,000 to $34,000 income.
-Married filing jointly with $32,000 to $44,000 income.

Up to 85% of a taxpayer's benefits may be taxable if they are:
-Filing single, head of household or qualifying widow or widower with more than $34,000 income.
-Married filing jointly with more than $44,000 income.
-Married filing separately and lived apart from their spouse for all of 2019 with more than $34,000 income.
-Married filing separately and lived with their spouse at any time during 2019.

[stylin19a]

IRS has a calculator for income tax on SS benefits for both me and my better angel.
I filled it in as if we only had SS income.
Filing jointly - both receiving almost maximum SS - paying taxes on $745.

so yeah taxed, but hardly.

[jonrick46]

We put all the information in pdf and download it in Tax Caddy. My daughter, who is a tax accountant pulls the information, runs it through their software and downloads it on Tax Caddy, sends it to the IRS and gives us a hard copy, signed with our digital signatures (a joint account). Because of Trump’s tax cuts, we have got money back.

[firebrand]

“Teddy” Kennedy, pushed through legislation that did mandate fed. inc. taxes on SocSec benefits.

But don't forget it was the beloved Ronald Reagan who started the tax on unemployment payments.