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Post by Lenny on Sept 27, 2007 16:47:30 GMT -5
I feel so sorry for elderly retired people living on Social Security who have to take jobs at the supermarket as grocery baggers just to make it through the month. SOme of them are sickly and don't really want to work.
They worked hard all their lives and already paid taxes on their earnings and now the government taxes their social security check which was already taxed when it was earned.
What's wrong with this picture and how come it's never an issue for candidates during debates to stop this double taxation of social security?
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Post by Preacher Mike on Sept 27, 2007 16:50:37 GMT -5
What's Wrong With This Picture? A whole lot......
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Post by Deleted on Sept 27, 2007 16:53:57 GMT -5
Lenny, Social Security as the SOLE income is not taxed. If an individual has other income such as a part time job, then there may be some tax withheld. My Mom and Dad's SS checks are not taxed.
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Post by Lenny on Sept 27, 2007 17:00:02 GMT -5
I am hearing you can earn up to a certain amount without social security being taxed. I guess I'll find out when I have my taxes done in January.
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Post by Fran Gyomory on Sept 27, 2007 20:32:09 GMT -5
My total social security is taxed and I do not work. I do have a pension and that is also fully taxed. I have a very small monthly annuity and that is taxed. Every penny you get when you are retired is taxed.
The social security issue with regard to maximum allowable income has to do with working only. If you earn over the monthly allowable amount you lose either $1 for each dollar or $2 for each $1 over the allowable earnings. I am not sure if it is $1 or $2. There is also an annual test for earnings which is used for people working either part time or full time and collecting social security.
I don't work and don't plan to work but every cent I collect on plans I paid for all my work life are being taxed as regular income.
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Post by Joan on Sept 28, 2007 7:16:24 GMT -5
:)Fran................you're right about the SS issue as I was going to look for a P-T job, and found that you can't make over a certain amount or they will deduct either $1 or $2. I'm not sure which it is either.
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Post by CQuinn on Sept 28, 2007 11:19:27 GMT -5
At FRA ( full retirement age) there is no limit on the amount you can earn. In 2007, if it's prior to your FRA... the limit you can earn is $34,440...before the penalty is applied. There is no federal tax on social security unless the social security plus pensions and earnings exceeds a certain amount on the federal formula. People living on social security... only... pay no income tax and they are not required to file income tax forms. The problem for older people is the fact that they never earned the salaries paid today so their social security checks are minimal. And the annual COLI doesn't keep up with the true cost of living increases.
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Post by Deleted on Sept 28, 2007 11:39:30 GMT -5
Thanks Charlie, that was the point I was trying to make yesterday and I think I confused some folks. My parents rely entirely on SS and pay no income tax and are not required to file returns.
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Post by Fran Gyomory on Sept 28, 2007 11:43:25 GMT -5
My full social security is taxed because I did plan for the future; knew that social security was only part of a potential retirement along with my pension plan and my 401(k) and other investments. So, I am taxed because I made sure I could support myself and wouldn't depend on the government to take care of me. What a country? ?
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Post by Preacher Mike on Sept 28, 2007 11:47:20 GMT -5
Same here Fran
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Post by Barry on Sept 28, 2007 16:35:12 GMT -5
Instead of taking a monthly pension I took a lump sum when I retired and rolled over to an IRA account. Have taxes taken out of what I take each month from my investment have no withholding on my ss. Got a nice tax return last year
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