Thanks for your answer but I was asking about the tax on the social security benefit for working seniors. If I understand it right the IRS "handy-dandy" worksheet looks like if your AGI goes more than 25,000 (for a single) or 32,000 (for married) you begin to lose your social security benefit to taxes at an alarming rate. I think seniors who are anticipating more work should understand clearly before they go sign up for work. Thanks for your patience.
Failte1 writes:<<If I understand it right the IRS "handy-dandy" worksheet looks like if your AGI goes more than 25,000 (for a single) or 32,000 (for married) you begin to lose your social security benefit to taxes at an alarming rate. I think seniors who are anticipating more work should understand clearly before they go sign up for work. >>Okay, now I see the question more clearly. I agree that's another drawback that folks need to understand about working in retirement. To my knowledge, nothing is contemplated or pending in Congress to change the taxation methodology.Regards..Pixy
Seems unfair - those limits don't allow for much, especially for seniors who are trying to support a family in their retirement, which many are. And I wonder why our government doesn't make it clear.
<< If I understand it right the IRS "handy-dandy" worksheet looks like if your AGI goes more than 25,000 (for a single) or 32,000 (for married) you begin to lose your social security benefit to taxes at an alarming rate. >>I don't think you're reading the worksheet correctly. Remember that the bottom line of the worksheet is not tax, it's the amount of SS benefits you include in your income.Let's say you were in the top tax bracket, 39.6%. (This applies on a joint return only for TAXABLE income above $271,050 for 1999.) You would pay tax on 85% of your Social Security benefits. Thus, at a maximum, 33.6% (39.6% of 85%) of your Social Security benefits would go back to the Federal government in the form of income tax on them. Hardly alarming for a household with almost $300,000 income.Of course, most SS recipients who take a part-time job would end up paying far less a percentage of their benefit in income tax.TMF ExROPhil Marti
I have an AGI of 20,086 and the form works out that I have to pay taxes on well over a third of my social security benefit. To me, that's a lot at my income level.
At the very real risk of starting a major flame war with those who seem only concerned with niggling at the margins of a flawed and failing SS system, have the American people become such fools that they willingly continue to tolerate what amounts to a government wealth transfer from working black men to retired white widows? Look at the mortality tables if you don't believe me. Then there's the case of Galveston County, Texas which withdrew from SS a number of years ago and invested in REAL companies, NOT rapidly depreciating government paper IOUs which are simply a claim -- under threat of force -- on the wealth of our grandkids. Galveston retirees now receive something like FOUR TIMES what the hapless SS recipient will get at retirement. Continuing the fraud of SS nearly assures that the "Golden Years" these folks are looking forward to will be more like badly tarnished brass. A DEMOCRAT sponsored study of entitlement and benefit programs disclosed that a child born around 1/1/2000 would have a full 84% of his or her lifetime wealth confiscated to pay for them unless they were severely curtailed. And DO NOT be conned with all this talk about a "surplus" with which the politicians plan to "save" the Ponzi scheme called SS. The best they will EVER be able to do is put it on a fancier life support device -- for a little while longer. It's more smoke and mirrors from DC.I'd like to kick off a serious conversation on the fast approaching and unavoidable national conversation we WILL have about PRIVATIZING retirement here ala Chile and Galveston County. Any takers??
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