Key Takeaway: Social Security is primarily funded through payroll taxes, which are contributions made by employees and employers based on earnings. These taxes make up approximately 88% of the program’s total income. Another source of funding comes from taxes on Social Security benefits, which are paid by individuals with higher incomes. The remaining funding comes…
Key Takeaway: Line 5a of Form 1040 shows the amount of social security benefits received for the year. This should be entered on the appropriate line of Schedule 1, which is used to calculate Adjusted Gross Income (AGI). Line 6a of Form 1040 shows the amount of any railroad retirement benefits received. This should also…
Key Takeaways: Social Security Tax is a payroll tax that helps fund the Social Security program, which provides retirement, disability, and survivor benefits to eligible individuals. Withholding Social Security Tax is a mandatory process by which employers deduct Social Security Tax from employees’ paychecks and remit it to the IRS on their behalf. Everyone who…
Key Takeaway: Understanding your State Pension Entitlement is crucial to planning for your retirement. It is a regular payment from the government that you may be able to receive when you reach State Pension Age, based on your National Insurance Contributions. The calculation of State Pension Entitlement takes into account the number of National Insurance…
\n Key Takeaway: \n \n Pension is a retirement benefit provided to individuals after they’ve retired from their job or reached a certain age. \n In France, the pension system is based on a pay-as-you-go system, where current workers pay for the pensions of retired workers. \n To be eligible for a French pension, one…
Key Takeaway: Investment risk due to inflation arises when the purchasing power of money decreases over time, reducing the real value of investments and income. Inflation can be caused by a variety of factors, including changes in the money supply, government policies, and international events. To mitigate the impact of inflation on investments, investors can…
Key Takeaway: DPI investment stands for Direct Participation Investment, a type of investment where individuals can invest directly in real estate and other assets, bypassing traditional investment vehicles like stocks and bonds. Investing in DPI offers diversification, professional management, and easy access to investments that are often not available through traditional investment channels. Investors should…
Key Takeaway: To check the status of your social security payment for the current month, log into your social security account and check the payment status. This can help you stay on top of your finances and plan your budget accordingly. If you have not received your social security payment for the current month, report…
Key Takeaway: Social Security Leveling option for pensions provides a stable income by offsetting Social Security payments against pension payments. The Social Security Leveling option works by calculating the social security offset and paying the pension with the remaining amount, resulting in a consistent income even when Social Security payments decrease. The benefits of the…
Key Takeaways: Medicare stopped using Social Security Numbers (SSN) as identifiers in 2018 as part of efforts to prevent identity theft and fraud. The Medicare Beneficiary Identifier (MBI) replaced the SSN-based Health Insurance Claim Number (HICN) as the new identifier for Medicare beneficiaries. The implementation of MBI started in April 2018 and was completed by…
Key Takeaway: Social Security may provide an extra payment if you are eligible for retroactive benefits. Retroactive benefits are payments for benefits that would have been paid in the past but were not received due to delayed application or other reasons. You may also receive an extra payment due to the Cost-of-Living Adjustment (COLA). COLA…
Key Takeaway: The tourism and hospitality industry has attracted the most American investment in Hawaii, with a focus on resorts and hotels to cater to the high demand of tourists visiting the Islands. The real estate industry has also been a popular choice for American investors due to the favorable climate and geographical location Hawaii…