Isn't that money getting taxed twice if it is?
2007-02-12 01:31:59 · 8 answers · asked by AKA WTA 2 in Business & Finance ➔ Taxes ➔ United States
Yes it does...My mother just started getting her ss retirement a few months ago and it gets taxed...I think thats a bunch of BS...its bad enough she doesnt get very much but to tax her on something she already got taxed on makes me furious
2007-02-12 01:36:41 · answer #1 · answered by Misti 3 · 3⤊ 2⤋
Retirement Social Security is taxable, depending on the retiree's other income.
SSDI (Social Security Disability Income) is taxable, depending on the taxpayer's other income.
SSI (Supplemental Security Income) is not taxable.
If a taxpayer receiving retirement social security or SSDI, and they have substantial other income, they will be taxed twice. However, chances are that the benefits received, over time, will be much greater than the original tax payed, even with the double tax.
2007-02-12 09:48:04 · answer #2 · answered by Robert in Nuuanu 3 · 2⤊ 2⤋
It's income, therefore it is taxed.
Is it taxed twice...no not really because Social Security is not an investment account. In other words, the money you put in, though taxed, isn't really related to the money you take out. Your money is gone, and many people will never take out more than they put in, especially if you consider any real rate of return that should be expected from normal investments.
P.S. Why the neg? Don't shoot the messenger. The money isn't taxed twice. For it to be taxed twice it would have to be the same money. The money you get out comes from a pool, not an individual account, therefore it isn't your money, taxed again.
.
2007-02-12 09:37:19 · answer #3 · answered by non_apologetic_american 4 · 2⤊ 4⤋
That depends on whether there is any other income involved, If you are getting SS benefits and working and the other income plus 50% of the SS exceeds a certain dollar amount, then up to 85% of the SS could be taxable. If there is no other income then none of the SS benefits would be taxable
Publication 915
http://www.irs.gov/publications/p915/index.html
2007-02-12 09:40:15 · answer #4 · answered by Rob 7 · 2⤊ 0⤋
Depends on how must other monies you make. Yes, it can be taxed twice.....
2007-02-12 09:35:06 · answer #5 · answered by Texan 6 · 2⤊ 3⤋
yes and yes
2007-02-12 09:35:56 · answer #6 · answered by Anonymous · 2⤊ 3⤋
yes, and yes.
2007-02-12 09:34:31 · answer #7 · answered by Some Lady 6 · 1⤊ 3⤋
Welcome to the USA, yes, you get hit twice.
2007-02-12 09:36:50 · answer #8 · answered by ? 3 · 3⤊ 3⤋