Key Takeaway: The Social Security wage cap is the maximum amount of income that is subject to Social Security taxes. In 2021, the wage cap is $142,800. The Social Security wage cap affects both employees and employers, as they are required to pay a certain percentage of wages up to the cap. For employees who…
Key Takeaway: Form SSA-1099 is issued by the Social Security Administration and provides information on the total amount of benefits received in a year, which is required for tax purposes. Income thresholds and age requirements determine whether or not a social security recipient needs to file taxes. Individuals who earn more than $25,000 ($32,000 for…
Key Takeaway: The extra payment from Social Security is a benefit paid in addition to the monthly retirement, disability, or survivor benefits for those who meet the eligibility criteria. The amount of extra payment is determined by factors such as the cost of living adjustments (COLA), Social Security benefit type, and other income earned by…
\n Key Takeaway: \n \n The proposed changes to social security include an increase in retirement age, a reduction in benefits for high earners, changes in COLA calculation, and an increase in payroll taxes. \n The increase in retirement age may impact those who planned to retire at a specific age and could lead to…
Key Takeaway: Children of a deceased parent may be eligible for Social Security child benefits, which can help provide financial support and stability during a difficult time. Eligibility for child Social Security benefits depends on the child’s age, relationship to the deceased parent, and the parent’s work history, including the number of credits earned and…
Key Takeaway: Combined Income is the total income, including wages, self-employment income, and investment income, used to determine Social Security benefit eligibility and taxability. Certain types of income, such as tax-exempt interest and certain pensions, are excluded from Combined Income. Calculations are based on a formula that takes into account half of the individual’s Social…
Key Takeaway: Some political groups advocate for ending Social Security: There are groups that argue Social Security is financially unsustainable and needs to be phased out. These groups believe that individuals should be responsible for their own retirement savings. Arguments against Social Security may not consider its importance: Although arguments against Social Security exist, it…
Key takeaway: Certain government employees, including federal employees hired before 1984, do not pay Social Security taxes and are covered by different retirement plans. Railroad employees are covered under a separate retirement program called the Railroad Retirement Act, which provides similar benefits to Social Security. Farm workers are not covered by Social Security if they…
Key Takeaway: It is important to protect your Social Security number to prevent identity theft and fraud. You can put a block on your Social Security number by contacting credit bureaus, freezing your credit report, or using an identity theft protection service. To further protect your Social Security number, it is recommended to never give…
Key Takeaway: Collection agencies can obtain social security numbers through various means, including credit reports, public records, and social engineering tactics. It is important to be cautious of who you share your personal information with and to monitor your credit report regularly to prevent unauthorized access. Legal implications of collection agencies acquiring social security numbers…
Key Takeaway: It is important to understand the types of Social Security benefits available for tax filers, which include retirement benefits, survivor benefits, and disability benefits. To file taxes using Social Security benefits, one needs to access the Social Security benefits statement, which provides information required for tax filing. Taxable Social Security benefits can be…
Key Takeaway: Social Security Disability recipients are allowed to own certain items that are considered non-countable resources, such as household goods, personal items, and burial funds. These items do not affect eligibility for benefits. There are income and resource limits for Social Security Disability recipients, and certain resources, such as cash, stocks, and bonds, are…