taxation of benefits
Perspectives on the Taxation of Social Security Benefits
President Trump has led the most recent charge to rescue Social Security beneficiaries from the pain of income tax assessments, but that’s certainly not the first time the thought has emerged. Through the years, many have argued that including a…
“No tax on Social Security:” Here’s the real story
Be careful of campaign promises and political spin – they don’t all happen, and sometimes they may actually happen, but take an unusual and different approach. Such is the case with the bold assertion by the Administration that “income tax…
Further clarification on the “Senior Bonus Deduction”
The $6,000 per filer bonus income deduction enacted via the One Big Beautiful Bill Act has generated quite a bit of discussion since its July 4 arrival, much of it dealing with its mechanics at tax filing time. As explained…
A Thought on Increasing Social Security’s Revenue Picture
Addressing Social Security’s long-term financial problems typically comes down to two fundamental moves: increasing the incoming revenue or decreasing the outgoing benefits. Either move presents challenges for policymakers, and that’s why there’s a constant search for new and novel approaches.…
Was Income Tax on Social Security really eliminated?
There has certainly been much discussion on this topic since the so-called “one big, beautiful bill” was passed by both Houses of Congress and enacted as law by President Trump. Many, including the Social Security Administration and the Trump Administration…
Taxation of Social Security Benefits…Some Background on the issue
In 1983, as part of the Social Security Amendments passed to avert a solvency crisis, Congress required all retirees to pay income taxes on 50% of their benefits if their incomes reached a minimum threshold.[1] The 1983 decision, however, did…
“Fixing” Social Security–A quick recap of some of the ideas being advanced
Money.com’s Pete Grieve, in a post on nasdaq.com, provides a quick summary of five of the ideas currently circulating among various proposals to address Social Security’s looming insolvency problem. As Grieve points out, public sentiment for resolving the matter “sooner…
All About Taxation of Retirement Benefits (including Social Security)
Ben Franklin once said, “Nothing is certain but death an taxes.” Especially at the Federal level, taxation of your income may be inevitable, but the story is considerably different when it comes to State income taxes. The fact is, that…
“You Earned It, You Keep It Act” would add 30 years to Social Security solvency–FA
In a post today by Tracey Longo on fa-mag.com, the results of Rep. Angie Craig’s (D-MN-2) bill titled the “You Earned It, You Keep It Act” were suggested to push the projected insolvency date for Social Security’s trust funds out…
The One Social Security Metric that Doesn’t Change
Most Social Security “metrics” (the various factors which affect your monthly benefit amount and the SS payroll taxes you pay) change each year to account for inflation and changes to the national Average Wage Index (AWI). Inflation, obviously, has an…