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
- Apple Could Get A $4B Timing Reduction In TCJA’S 15.5% Transition Tax?By Ronald MariniAccording to taxproToday, Companies that stockpiled trillions of dollars offshore free of U.S. income tax may get one last break before paying up, provided their fiscal years don’t follow the […]
- New Legal Entity; The “Series” LLCBy Brett ThompsonSome states have created a novel and extraordinarily flexible type of entity called a “Series LLC”. Seven other states currently have this entity namely, Delaware, Illinois, Iowa, Nevada, […]
- Italy – Budget Law For 2018 Introduces Major Developments To Domestic Tax SystemBy Elio PalmitessaThe Italian 2018 Budget Law, approved by the Parliament on 23 December 2017 and turned into Law No. 205 of 27 December 2017, has introduced a package of tax reforms for corporations and individuals. […]
- State Tax Deduction Limit? California Fights BackBy Monika MilesBy now many of us in California have contemplated our fate regarding how the tax reform act passed by Congress last month will likely hurt Californians as a result of the federal limit on the state […]
- The Stealthy Increase In The Tax Cuts And Jobs Act Of 2017By Charles RubinEver since the Reagan Administrative, tax brackets have been indexed for inflation. This avoids bracket creep when taxpayers move into a higher tax bracket because inflation pushes up their income. […]
- Apple Could Get A $4B Timing Reduction In TCJA’S 15.5% Transition Tax?