If you receive Social Security benefits, you may have to pay federal income tax on part of your benefits. These tax tips will help you determine if you need to pay taxes on your benefits.
Tag Archive for Social Security Benefits
Social Security – that onerous tax we pay to work in the United States, supposedly for our own retirement but it seems to be more to fund those who are already drawing on it! I have quite a few clients who are on temporary work visas here in the US. They rightfully question whether they will be able repatriate Social Security when they are eligible to draw on it. Or there are those US Citizens who travel after they retire and may even choose to settle abroad or go back to their home country if they had migrated to the USA.
Are You A US Citizen or Not?:
Retirees who are U.S. citizens are entitled to continue receiving benefits for as long as they live outside the United States. However, citizens of other countries who receive Social Security may have some restrictions on how long they can receive benefits while outside Read more
There is a lot to consider when deciding when to take your Social Security, but let’s start off with the basics. Every year you get a statement from Social Security that tells you what your benefit will be when you retire. Full retirement age is currently 66, but forty years from now I assume it will be much higher for me. The statement will tell you the benefit is $20,000 (depending on your earnings history) when you are 66 years old.
But there are choices, so many choices to be made. If you claim Social Security early (before you are 66) you get a smaller amount. If you claim when you are 62 years old, you get 75% of the full amount which would be $15k a year in this case. If you claim at 63 it’s 80%, 64 it’s 87% and at 65 it’s 93% of the full value.
Taking your Social Security early will pay off if you are planning on getting hit by a bus at your 71st birthday party, but if you are planning to live to 100 it probably won’t work out well. Another choice is to claim the Social Security later at 67, 68, 69 or 70 years old. For every year you wait after 66, you get an additional 8%. Meaning if you wait until 70 years old, you get 132% of the full value every year for the rest of your life. $26,400 instead of $20,000 a year is a big difference and over the long haul you will come out ahead. Read more
Private And Confidential
Executive Search Services
- Tax Experts Wanted – Tax Professionals Who Want To Be Introduced To Corporate Tax ExecutivesBy Kat JenningsTaxConnections is launching our innovative Tax Experts Panel. We will introduce a wide range of TaxConnections Tax Experts to CEOs, CFOs and tax executives of large, medium and small corporations. In […]
- What Do You Think About President Trump’s Tax Plan?By Kat JenningsThe qualifications of the TaxConnections Community Members are outstanding. Over the past year, I have learned many lessons from Tom Kerester, our Tax Ambassador in Washington who previously wrote […]
- Florida Prescription-Required Single-Use Hospital ExemptionBy Aaron GilesThe state of Florida provides several sales & use tax exemptions for medical purchases made by hospitals and health care facilities. One exemption that provides an opportunity for sales & use […]
- Major Overhaul To Arkansas Sales And Use Tax ExemptionsBy Aaron GilesAct 465 will significantly change the Arkansas sales and use tax exemptions available to manufacturers by phasing out two sales tax incentives while concurrently expanding the exemption for […]
- He Who Hesitates Is Lost – Late Filing RefundsBy Eva RosenbergI have heard questions about expired refunds. Let me summarize. “I faced a hardship and didn’t file tax returns for several years. Now, I learn that I cannot get my refunds for all those years. Can […]
- Tax Experts Wanted – Tax Professionals Who Want To Be Introduced To Corporate Tax Executives
- Tax Experts Wanted – Tax Professionals Who Want To Be Introduced To Corporate Tax Executives on
- Breaking Down The President’s Tax Plan on
- Major Overhaul To Arkansas Sales And Use Tax Exemptions on
- You Thought Your Information Was Safe With The IRS on
- Eight Tax Questions To Ask Before You Get Married on