Self-Employed Individuals Pay Double: Social Security Taxation Breakdown Explained

Washington, D.C. – In the United States, both employees and employers contribute 6.2 percent of income earnings to support the Social Security system. However, individuals who are self-employed are responsible for paying the full 12.4 percent on their own. It is worth noting that there is a cap on the wages subject to Social Security taxation, which stands at $168,600. Any income exceeding this threshold is not taxed for Social Security benefits. This financial arrangement …

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Strategies for 2024: Understanding Social Security Benefits Taxation and Minimizing Tax Burden from The Motley Fool

New York – As the economic landscape continues to shift, many individuals are seeking guidance on how to navigate the complex world of investment and retirement planning. One organization at the forefront of providing valuable insights is The Motley Fool. Founded in 1993, The Motley Fool offers a range of services, from premium investing solutions to free guidance, market analysis, and podcasts. Its latest offering delves into the intricate world of Social Security benefits taxation …

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Before Moving to Another State, Consider This First

If you’re contemplating a move to a different state, you’ve likely considered state income taxes when making your decision. However, it’s important to also consider the impact of state and local sales taxes on your budget. Four states—Delaware, Montana, New Hampshire, and Oregon—do not impose statewide sales taxes, nor do they have local sales taxes. While lacking a statewide sales tax, Alaska permits cities and towns to impose sales taxes. When factoring in these local …

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Social Security Taxation: Understanding Why Recipients Must Pay While Collecting Benefits

Myrtle Beach, SC – A senior citizen who is collecting full Social Security benefits while still working full-time wonders why the federal government continues to deduct Social Security payroll taxes from their paycheck. The confusion stems from a lack of clarity on why individuals receiving benefits must contribute to the program’s funding. The individual, who had $4,400 deducted from their pay in 2023, questions the rationale behind this process. In response to the inquiry, it …

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Social Security Expert Explains Taxation on Working Seniors

Chicago, IL – A senior citizen collecting full Social Security benefits while working full time is puzzled by the continued deductions from their paycheck by the Federal Government. Despite seeking clarification from Social Security experts, the individual remains unsatisfied with the response that “it’s the law.” With $4,400 deducted in 2023, the individual feels the amount taken from their pay is not proportionate to the COLA increase received. An explanation for why the government taxes …

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Legislation to Repeal Federal Taxation of Social Security Benefits Introduced by Bipartisan Representatives

Denver, Colorado – Two Democratic representatives, Angie Craig from Minnesota, and Yadira Caraveo from Colorado, have introduced a new legislative proposal known as the “You Earned It, You Keep It Act.” This act aims to eliminate federal taxation on Social Security benefits starting in 2025. Caraveo emphasized that the proposed legislation would be funded by raising the cap for individuals earning more than $250,000 annually. She emphasized the importance of ensuring that hard-working individuals can …

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Taxation of Social Security Benefits: What Retirees Need to Know for the 2023 Filing Season

Atlanta, Georgia – As of the beginning of 2024, over 53 million Americans aged 65 and above were receiving retirement benefits from the Social Security Administration (SSA). These monthly payments are a crucial form of federal financial support for senior citizens. However, many retirees are uncertain about how these payments are taxed. As tax season gets underway, there is confusion among filers regarding whether seniors who receive Social Security payments need to file a tax …

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