Social Security vs. a Pension?

Question

I am a teacher and shouldn't pay SS because I am paying to a pension. I think. So how do I note that on my taxes? Somehow I owe like $4000.

Answer 1

Are you having any Federal Taxes withheld from your paycheck? If not you need to adjust your W4 through your employer. This should have nothing to do with your contributions to SS because you don't add that or subtract that from your tax return. If you did have taxes taken out, and still owe, you still need to adjust the W4. It sounds like you may possibly be inputting incorrect information on your return. For assistance call the IRS at 1-800-829-1040

Answer 2

I believe that a tax lawyer can advise you on what your obligation is. Your human Resources person should be able to tell you, you might check with your Union Representative or your Tax Preparer as well. I am a Union member and pay into a pension as well, but I am still required to pay social security. I believe that it the law to...? I was told that I can draw both when I retire so they don't have anything to do with each other, maybe that's why I was told I had to pay social security anyway.

Answer 3

Some teachers are exempt from SS taxes. You'll know simply because no SS taxes are withheld. You don't need to note anything on your taxes as far as that's concerned. What do you owe $4,000 on?

Answer 4

everyone pays SS, regardless of whether youre in a pension. when you retire you will be eligible for SS benefits as well as receive a pension

Answer 5

Only certain organizations can opt out of SS and schools are one. However your entire organization must opt out. You can not choose not to participate just because you don't want to. You employer should tell you if you are in or out and if you are in, they should be making the deductions and paying it to the system for you. If you are out, you employer should notify SS for you.