The information you presented has been making the rounds on e-mail for months. Don’t feel too bad, I have friends who are normally very reliable and very well-informed falling for this. It’s just not true that the benefits will be taxed as ordinary income. Think about it: if it were true, do you think the republicans running for office this fall wouldn’t have seized upon it and made it the centerpiece of their argument for repeal? This tax would push some people’s tax liability through the roof.
I didn’t present it, the poster did. I am just seeking the usual FReeper double confirmation. But thanks!
I accept that this isn't yet going to be taxed, but I don't accept that it will not be taxed as income and is placed on the W2 just for information purposes. At some point, anything above a “fair” amount on that line of the form will be taxed. Then, your theoretical $21,000 will show the ‘fair’ $12,000 deducted and the balance added to the money you stole from the masses and must make restitution for.
have a nice day