Social Security... - Page 2

Mom2Dogs · ‎03-09-2010

@de1rdre wrote:
Social Security benefits do not constitute earned income, and as such do not serve as the basis for making IRA contributions.

They may or may not be taxable depending on the total amount of Social Security benefits and other income received during the year.

Well fudge....we need that tax deduction we have been getting for the IRA

NicksmomESQ · ‎08-19-2014

Social security is considered unearned income.However,depending on your overall net income you may owe taxes on it.

151949 · ‎03-09-2010

@Annabellethecat66 wrote:
It's just crazy that anyone should have to pay taxes on any Social Security. Our money is taxed to death. It's just crazy!

First of all - in comparrison to other modern countries we pay very low taxes in the USA. Very few people who are on SS actually pay taxes on their income as the first 32,000 for a couple is not taxed and even if you both got the max amount it only comes to less than $60,000 a year. I don't know any one where both of the couple get the max amount. My DH gets the max and I get considerably less - by the time we deduct our personal deductions our total income is under the 32,000 so we pay no taxes. We don't even have to do a long form - just the short 1040A.In actual fact - we aren't required to file at all or to pay anything in thru the year but we do just to be safe.We get back every cent we pay in.

Mom2Dogs · ‎03-09-2010

@151949....we are self employed and want to take as many deductions allowed by law.....that was the purpose of my question...I am not considered an employee as of this year but still work.

SeaMaiden · ‎03-10-2010

@Annabellethecat66 wrote:
It's just crazy that anyone should have to pay taxes on any Social Security. Our money is taxed to death. It's just crazy!

@Annabellethecat66 I agree totally.

millieshops · ‎03-09-2010

@Mom2DogsI'm not a professional, but I'd bet you big money yhat you can't use your SS income as the basis for an IRA.

The good news is that if you're already SS age, it's really not that long until you have to start taking distributions and many financial planners would advise you not to put more money into IRA's now.

Mom2Dogs · ‎03-09-2010

@millieshops....I am taking SS early, 62 years....mainly because of my oh so high medical premiums.

We have a meeting with our financial advisor in a few weeks and I have made a list of questions, but would love to find something to replace the tax deduction we have been getting for my IRA contributions.

Annabellethecat66 · ‎03-12-2010

My accountant and my stock broker both told me I have to start taking my IRA money this year. Ugh! I guess they'll tell me where to put it or what to do with it. Doesn't make sense to me.

Mom2Dogs · ‎03-09-2010

@Annabellethecat66...you have reached that magic age when you must start to take your IRA's.

Mh DH is older than I am and he has been taking distrubutions for a couple of years...we just pay the taxes and reinvest the money. Since we are still working we don't want the money, so we save it.