I have NO plans on using either in the future. Why do I have to pay into it? (I'm retiring overseas) How do I NOT pay into it? Why should I pay out of my money to support others who don't know how to support themselves?
2007-12-02 09:49:25 · 16 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Merely retiring overseas does not affect your entitlement to Social Security benefits. I know a number of folks living overseas and collecting SS benefits. You can't use Medicare outside the US (with extremely limited exceptions for emergency care) but living outside the US is a personal decision not one forced upon you.
The SS and Med taxes you pay are NOT for your future retirement of medical care. It's for the CURRENT beneficiaries of the systems. The current labor force supports its retirees much in the same manner that in some cultures children support their elderly parents. (It used to be that way in the US and some sociologists have argued that the implementation of the Social Security system has helped break some family ties as children generally no longer have to support elderly parents.)
When you retire, your benefits will be paid by the then-current labor force. Your benefits will be based upon your lifetime earnings, not the amount of taxes paid in your working lifetime. In most cases though you will receive benefits equal to all of the taxes withheld during your working lifetime in less than 10 years. After that, you'll be in the black as far as a comparison of your total taxes paid and the benefits received.
The fact is that there are no waivers of Social Security and Medicare taxes based upon your claim that you will not file for benefits in the future. Unless you are a member of certain religious groups that have existed continuously since 12/31/1950 that eschew reliance upon government support and insurance benefits AND provide similar benefits to their members there is no way to be exempted from Social Security and Medicare taxes.
2007-12-02 10:54:20 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Legally no, you are required by law to pay into it. You'll pay self-employment tax, which is social security and medicare, if you make over $400 for the year as an independent contractor.
2007-12-02 10:03:33 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
You would be able to collect social security even if you decided to live overseas... I know because I do... but the health care is another thing and I don't know of any way not to pay into it.
2007-12-02 09:52:12 · answer #3 · answered by Anonymous · 0⤊ 0⤋
No, there is no way to not pay self-employment taxes (SS and Medicare) if you are self-employed.
If you retire overseas, you can still collect your Social Security checks, so you will not be losing them.
2007-12-03 04:47:11 · answer #4 · answered by ninasgramma 7 · 0⤊ 0⤋
Tax evasion is not a good idea that's how they caught up with Al Capone. Couldn't pin any mob crimes on him but got him for tax evasion. What do you think your chances are? As Clint Eastwood said "Are you feeling lucky?"
Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. It is similar to the social security and Medicare taxes withheld from the pay of most wage earners.
You figure SE tax yourself using Schedule SE (Form 1040). Social security and Medicare taxes of most wage earners are figured by their employers. Also you can deduct half of your SE tax in figuring your adjusted gross income. Wage earners cannot deduct social security and Medicare taxes.
SE tax rate. The self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).
2007-12-02 09:58:47 · answer #5 · answered by Tom Z 7 · 0⤊ 0⤋
Why do you think that you are better than everyone else? I have to pay taxes for schools in my area,and my son has been out of school for twenty years. does that mean that I don't have to pay for them? I am no longer using them.Pay your bills and quit whining.
2007-12-02 10:01:38 · answer #6 · answered by phockit47 4 · 0⤊ 0⤋
Well, whether or not you plan to use the system is irrelevant. You still have to pay into it, self-employed or otherwise.
2007-12-02 10:17:24 · answer #7 · answered by acermill 7 · 0⤊ 0⤋
you need ssi if you become totally disabled.I hate paying medicare2 feel like Im supporting strangers
2007-12-02 09:53:25 · answer #8 · answered by bumblebee 2 · 0⤊ 0⤋
Legally there is NO WAY that is the simple truth and a short answer.
2007-12-02 10:00:17 · answer #9 · answered by Anonymous · 1⤊ 0⤋
no because everyone have to pay taxs but you are paying for all govement no matter what bussinss you get into also look at it like this at the beging of the you you only you will get that back.......................
2007-12-02 09:54:17 · answer #10 · answered by Anonymous · 0⤊ 0⤋