Asked 1/13/2010
|
I understand the goverment is going to tax social security and medicare. I have been retired 5 years,after paying into social security for 50 years-I am now 68,and my wife is 65. I have a small monthly pension,and covered by healthcare through the company I worked for 40 years. I have small variable annuity that pays me $450 a month-taxes paid. Now rumor has it that in order to pay for the new healthcare bill-the government is going to tax my social security and medicare parts A and B. What is your opinion? |
Answer 1/2 - Submitted 3/7/2010
Rumors about Medicare and Social Security seem to be plentiful. First let me say that Medicare will not be taxed. It is not considered income and you pay a premium for Part B coverage. Medicare Part A has no premium and was already paid for by you through payroll taxes.
As for taxing Social Security, it is not a rumor it already is taxed depending on your income level.
In 1981 the National Commission on Social Security Reform (sometimes referred to as the Greenspan Commission after its Chairman) was appointed by Congress and President Reagan to work on the financing crisis in Social Security. The result of their study included several amendments that were passed by Congress, signed by President Reagan and made into law in 1983. The specific rule applying to the taxation of Social Security benefits for the first time is copied below:
If the taxpayer's combined income (total of adjusted gross income, interest on tax-exempt bonds, and 50% of Social Security benefits and Tier I Railroad Retirement Benefits) exceeds a threshold amount ($25,000 for an individual, $32,000 for a married couple filing a joint return, and zero for a married person filing separately), the amount of benefits subject to income tax is the lesser of 50% of benefits or 50% of the excess of the taxpayer's combined income over the threshold amount. The additional income tax revenues resulting from this provision are transferred to the trust funds from which the corresponding benefits were paid. Effective for taxable years beginning after 1983.
Any changes to the current level of taxation of Social Security will take separate legislation by congress. The funding possibilities for healthcare reform do include taxing what are considered "cadillac health policies" and high income taxpayers. There has never been and to date there are no provisions in the healthcare reform bill to further tax anyone in your income level.
Type your Answer in the box below and post your answer.
So, if the issues on medicare and social security are done away with. will employed workers still have to pay social security and medicare taxes?
According to my w-2 my previous employer withheld state tax, medicare tax and social security tax.the medicare tax amount and social security tax amount add up to the ytd fica amount lised on my last pay stub. no federal tax was withheld. i claimed 6 when i filled out the paperwork during the hiring...
I was in us for 90 days and earned $6800. my total tax deductions where $850 for fedral tax and $410 for social security tax and $90 for medicare tax. all these taxed where deducted by my company before giving my pay check. during this time i also applied for my ssn, but after i came back to india i...
|
So, if the issues on medicare and social security are done away with. will employed workers... |
|
According to my w-2 my previous employer withheld state tax, medicare tax and social security... |
|
Getting tax refund of my 90 days us pay without having ssn. I was in us for 90 days and earned $6800. my total tax deductions where $850 for fedral tax... |
|
Social security & medicare taxes withheld On the sc tax return where does the amount of tax you paid into social security & medicare... |
|
Do you think cutting medicare and social security will help fix the deficit? The talking heads on tv are lying to the american people. social security and medicare... |
|
What is the tax percentage charged to america Income tax social security and medicare tax property tax sales tax excise tax estate... |

Ask A Question
Ask a new question about
Medicare: