Why do people on Social Security have to pay income tax on their Social Security Checks???

Question

Up to fifty(50%) of Social Security benefits may be subject to income tax for individuals with a combined income between 25 thou and 34 thou, or for couples with a combined income between 32thou and 44thou and up to 85% of Social Security benefits may be subject to income tax for individuals with a combined income above 44thou!!! Less than a third of current Social Security beneficiaries have incomes that exceed the thresholds, requiring them to pay taxes on a portion of their Social Security benefits!! Why should they have to pay any tax when they already paid income tax on their money they earned when they were working!!! It looks like they are being taxed twice>Once when they worked and again when they Retire!!! That doesn't seem fair or equitable!!! NO ONE WHO WORKS FOR A LIVING SHOULD HAVE TO LIVE IN POVERTY!!! ATTENTION [Government and Employers*]

Answer 1

Social Security has been going down hill ever since Kennedy stuck his fingers in it. Your right, we are being screwed again. Welcome to America.

Answer 2

Gift taxes are totally separate from income taxes. We'll address the gift tax first. Effective 2009, each year you can give to your daughter up to $13,000 of money or assets (if married, you can give up to $26,000) without paying any Gift tax. However, you must file Federal form # 709 every time you make a gift to each offspring. The reason the IRS (and our Congressmen) want income tax charged on social security whenever the guy makes over $25,000 on OTHER income, is because it is not fair that the well-to-do receive tax-free money from the Social Security fund when poorer people (with no Other income) have to live on just their Social Security.

Answer 3

First, the income levels are well above the poverty line in America - which currently sits at somewhere around $15,000 per year for 2 people.

Second, if you look at what is paid in (per month) versus what is paid out (per month), you will find that you blow through your contribution (assuming you worked age 18-67) in less than 10 years. So SS becomes an INVESTMENT payout after you get your initial money back.

So, in essence, you're complaining about rich people (who already have worked for, planned for, and taken care to plan for this) being taxed on income above and beyond what they paid in.

Answer 4

If the government taxed welfare payments, people would scream to heaven. Taxing Social Security is the same thing.

Tax will never be fair until we have a flat percentage tax on all kinds of income for Everyone.

Answer 5

They didn't pay taxes on the portion of their earnings that was sent to Social Security.
It's income, and as income is subject to the same taxes as if you had a job. In fact for those that do have a job and still get benefits, it makes sure they are paying taxes equivalent to other Americans with similar incomes.

Answer 6

The tax is based upon total income. Those living in poverty pay little or no taxes.

Answer 7

You are right, it is an unfair system. The government decides that higher income individuals are not worthy of the benefit they paid into. Another way that the rich subsidies the poor.

Answer 8

I believe that this happened during the Reagan administration. The taxes pulled from social security go into medicare. So if you recieve social security AND medicare, you are still getting 100% of of your social security check.

Answer 9

Did you even read the paprgraph you just wrote? People whose SSA checks are taxed have income over a certain level, they don't live in poverty. Most people on SSA do not have their money taxed.

Answer 10

Because Social Security isn't taxed initially.

Answer 11

Because the government is stupid and they are trying to squeeze every imaginable bit of money out of people.