Re: Social Security Question
momtwo - Before I retired, I developed many budget spreadsheets to verify if and when I would be able to retire.* I always included the 1.45% Medicare tax on both my pension and SS just to make sure I was covering every base;* I am now retired for 3 years and am age 63 and collect SS - I do not pay a "Medicare tax" from either my SS or from my defined-benefit pension.* I was pretty pleased that 1.45% Medicare tax was not deducted from these retirement income sources.
Perhaps you are mixing up the Medicare Part B fee with a medicare tax.* When you turn 65 you can sign up for the free Medicare Part A (Hospitalization) and the not-free Part B (office call expenses, etc) and/or Part D (Drug Benefit).* Medicare prefers to take Part B and D costs out of your SS payment, if there is one.* DW is under Medicare Part A and B but does not yet collect SS since she is working part time;* she pays for the Part B by check quarterly, and pays the Medicare 1.45% "tax" on her earned income.
Dad's Dream; to have enough money someday to live the kind of life my wife and kids do...
Life is what happens while you are making other plans... John Lennon...
the more you look, the more you see...