Well first year on SS and it cost me 6800.00 this year on my taxes. Damn I hate the criminals who set up taxes on SS. I hope Trump and the repubs can eliminate this tax once and for all. Kind alike double jeopardy with the law.

Guess what Medicare Part B is means tested and then there is RMD. It never ends

I’d love to see the RMD evaporate.

Pretty sure it was President Regan that started taxes on Social Security..

Well your taxes while you were working were reduced because the contribution to SS was pre-tax and you didn’t pay any taxes on it in the first place.

But I agree that SS income should be tax exempt because you were giving the feds a long term loan with your earnings.

I’m hoping that Trump and Vance can get Congress to make SS tax exempt but not at the expense of losing a pre tax deduction

It’s my understanding that some large bill has made it through the House and is now in the Senate. This bill would eliminate federal taxes on SS benefits and tips to name a few.
Keep your (and my) fingers crossed!

That'll be a lot of money to have to make up from somewhere.

Well they can take it from somewhere else as far as I am concerned. I have paid a ton over the years like so many others.

Only one half of your total social security withholding is taxed. The 6.2% that comes directly out of your paycheck is taxed as ordinary income. It is the employer matching 6.2% that is not taxed. So nhtagmember is incorrect. Only one half of your total social security contributions is pre-tax (the employer portion).

In addition, when you actually receive your social security, the Fed tax is only on 0% to 85% of the total social security received (depending on your income level). As such, a lot of people pay little to no Fed tax on their social security.

There seems to be a lot of misinformation out there. Please do your research and talk to an actual tax professional.

This message has been edited. Last edited by: MortimerPCumquat,

Pres Trump did say we're taking in $2B/day from tariffs right now...

I stand corrected

quote:

Originally posted by MortimerPCumquat:
As such, a lot of people pay little to no Fed tax on their social security..

While true that some pay no federal income tax on social security, the system is bent so as to heavily and progressively punish those who are successful during their working years and then again in retirement.

There are a lot of tax traps in retirement, all of which stack upon each other.

Let's hope Trump changes these brutal taxes we pay. If we are bringing in 2 billion a day in tariffs, that's money we have not been bringing in. rough day to find this out but that is life as we know it at the moment. Thanks for all of the responses. I guess my new grill will be a bit less fancy lol.

a little more basic background courtesy of the interwebs:

The taxation of Social Security benefits began in 1984 following the passage of a set of amendments in 1983, which were signed into law by President Reagan in April 1983.

This change was a recommendation from the Greenspan Commission, which was appointed by President Reagan and chaired by Alan Greenspan.

The basic rule put in place was that up to 50% of Social Security benefits could be added to taxable income if the taxpayer's total income exceeded certain thresholds.

In 1993, the percentage taxed on Social Security benefits was increased from 50% to 85% with Joe Biden being the deciding vote.

It sounds as though MortimerPCumquat knows his business.

Yes indeed. Reagan should have said no but that is history. Biden? Evil POS.

Paying tax on a tax…sorry fellas. Hope this shit goes away soon.

Are you still working? High tax bracket? That seems like an awful lot, is it just me?

Started collecting Social Security before full retirement age and still working?

quote:

Originally posted by MortimerPCumquat:

In addition, when you actually receive your social security, the Fed tax is only on 0% to 85% of the total social security received (depending on your income level). As such, a lot of people pay little to no Fed tax on their social security.

My understanding is that those income level thresholds that determine whether 0%, 50%, or 85% of your SS benefit is exposed to taxation at your marginal tax rate hasn’t been adjusted even for inflation since its implementation. That’s effectively a big clawback of SS benefits for the government.