Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Sometimes I wonder do I want a social security raise?
Old 01-16-2020, 11:41 AM   #1
Recycles dryer sheets
 
Join Date: Jun 2017
Location: algona
Posts: 75
Sometimes I wonder do I want a social security raise?

Wife and I got our social security raise this month which is a good thing but also notified our Part B premium went up to $144 and deductible rose to $198 not so good. But my biggest gripe is this also puts me closer to the IRS section on do my Social Security payments get taxed which for joint is $32,000.
Half our social security and all other income must be below this before part or all social security is taxed.
If the IRS would let me at least deduct the premiums or raised the amount $32,000 every year they give me a raise it would be a more fair game. As I get closer to that $32000 I wonder if we would be better off with no raise and don't raise my premiums. Im getting closer to the $32000 which one would think ok I'm making more money but after the premium and deductible increase Im not really making that much more.
Thanks for letting me vent. Maybe 2020 the #32000 will be higher. Its that time of year...….steve
Steve s is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-16-2020, 11:47 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,204
Quote:
Originally Posted by Steve s View Post
....If the IRS would let me at least deduct the premiums or raised the amount $32,000 every year they give me a raise it would be a more fair game. ...
It's Congress that controls that amount, not the IRS... so no need to blame the IRS.... they just use the number in the statute passed by Congress.

I can't remember the last time it was increased and it is highly unlikely that it will ever be... it is a stealth tax increase that Congress seems content to keep.

Stop whining.... put on your big boy pants and get used to the idea.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56
pb4uski is offline   Reply With Quote
Old 01-16-2020, 03:50 PM   #3
Recycles dryer sheets
 
Join Date: Mar 2016
Posts: 178
Quote:
Originally Posted by pb4uski View Post
I can't remember the last time it was increased and it is highly unlikely that it will ever be... it is a stealth tax increase that Congress seems content to keep.
+1

The limits haven't been changed since being implemented in 1983.

And then they added the 85% taxable limits in 1993, which haven't changed either.
niven is offline   Reply With Quote
Old 01-16-2020, 04:27 PM   #4
Thinks s/he gets paid by the post
 
Join Date: May 2019
Posts: 2,637
I don't want to rehash this in another thread since this was discussed in the thread I'll link to here. Hopefully, the the tax problem will be fixed in the coming years. More people need to complain about it, but too many aren't even aware of it.

http://www.early-retirement.org/foru...ss-101442.html
GenXguy is offline   Reply With Quote
Old 01-16-2020, 04:42 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
ziggy29's Avatar
 
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
Yeah, this is just a problem with how Congress "fixed" SS in the early 1980s. Like the AMT for so long, this $25,000/$32,000 threshold for taxing SS has not changed for over 35 years, when it originally supposed to hit only higher income taxpayers. This needs to be fixed, IMO. It needs to be raised -- probably tripled at least -- and indexed to inflation in the future.

How much you pay for Medicare is a different story, but it would hurt a lot less if the taxation of benefits wasn't so punitive for even the lower middle class.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
ziggy29 is offline   Reply With Quote
Old 01-18-2020, 07:22 AM   #6
Full time employment: Posting here.
racy's Avatar
 
Join Date: May 2007
Posts: 880
Quote:
Originally Posted by ziggy29 View Post
...Like the AMT ...when it originally supposed to hit only higher income taxpayers......
Yes, I am mindful of this whenever I hear proposals to "tax the wealthy". In time, that'll be most taxpayers.
__________________
"It is better to have a permanent income than to be fascinating". Oscar Wilde
racy is offline   Reply With Quote
Old 01-18-2020, 08:44 AM   #7
Recycles dryer sheets
 
Join Date: Jun 2017
Location: algona
Posts: 75
Thanks for the replies. Always feel a little better after a vent. Thanks for the shoulder!
Steve s is offline   Reply With Quote
Old 01-18-2020, 01:23 PM   #8
Thinks s/he gets paid by the post
Brett_Cameron's Avatar
 
Join Date: May 2011
Location: South Eastern USA
Posts: 1,068
Quote:
Originally Posted by Steve s View Post
Wife and I got our social security raise this month which is a good thing but also notified our Part B premium went up to $144 and deductible rose to $198 not so good. But my biggest gripe is this also puts me closer to the IRS section on do my Social Security payments get taxed which for joint is $32,000.
Half our social security and all other income must be below this before part or all social security is taxed.
If the IRS would let me at least deduct the premiums or raised the amount $32,000 every year they give me a raise it would be a more fair game. As I get closer to that $32000 I wonder if we would be better off with no raise and don't raise my premiums. Im getting closer to the $32000 which one would think ok I'm making more money but after the premium and deductible increase Im not really making that much more.
Thanks for letting me vent. Maybe 2020 the #32000 will be higher. Its that time of year...….steve
Medicare Part B and D premiums are deductible,
__________________
All that glitters is not gold. -G. Chaucer, W. Shakespeare
All that is gold does not glitter. -J.R.R. Tolkien
Brett_Cameron is offline   Reply With Quote
Old 01-18-2020, 02:08 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 13,184
Quote:
Originally Posted by Steve s View Post
Half our social security and all other income must be below this before part or all social security is taxed.
Under the current tax code, at no point is ALL social security taxed. 85% is the top, right?

You're not getting taxed (including medicare premiums) more money than the SS benefit increase, are you? I suppose it's possible with the IRMAA increases, but it seems unlikely.
RunningBum is offline   Reply With Quote
Old 01-18-2020, 03:12 PM   #10
Thinks s/he gets paid by the post
 
Join Date: May 2019
Posts: 2,637
Quote:
Originally Posted by Brett_Cameron View Post
Medicare Part B and D premiums are deductible,
Only the amount that exceeds 10%* of your AGI, and only if it benefits you to itemize, and with the high standard deduction, that's very few people these days.

* I think it's 10% now and used to be 7.5%.
GenXguy is offline   Reply With Quote
Old 01-18-2020, 03:15 PM   #11
Thinks s/he gets paid by the post
 
Join Date: May 2019
Posts: 2,637
Quote:
Originally Posted by RunningBum View Post
Under the current tax code, at no point is ALL social security taxed. 85% is the top, right?

Yeah, it's up to 85% at the federal level, for now.
GenXguy is offline   Reply With Quote
Old 01-18-2020, 03:23 PM   #12
Thinks s/he gets paid by the post
Philliefan33's Avatar
 
Join Date: Oct 2014
Posts: 1,677
Quote:
Originally Posted by GenXguy View Post
Only the amount that exceeds 10%* of your AGI, and only if it benefits you to itemize, and with the high standard deduction, that's very few people these days.

* I think it's 10% now and used to be 7.5%.


It was 7.5%, then went to 10%, but for TY 2019 it is back to 7.5%.
Philliefan33 is offline   Reply With Quote
Old 01-18-2020, 04:16 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Chuckanut's Avatar
 
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 17,134
Quote:
Originally Posted by pb4uski View Post

I can't remember the last time it was increased and it is highly unlikely that it will ever be... it is a stealth tax increase that Congress seems content to keep.

+1


No doubt it is part of the plan to fix SS funding problems. They must have forgotten to mention it during the last election cycle.
__________________
Comparison is the thief of joy

The worst decisions are usually made in times of anger and impatience.
Chuckanut is offline   Reply With Quote
Old 01-18-2020, 04:25 PM   #14
Thinks s/he gets paid by the post
 
Join Date: May 2019
Posts: 2,637
Quote:
Originally Posted by Chuckanut View Post
No doubt it is part of the plan to fix SS funding problems. They must have forgotten to mention it during the last election cycle.
If only this bill would pass, it would help make up for so many years of the thresholds not being adjusted for inflation.

H.R.860 - Social Security 2100 Act
GenXguy is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Why rich guys want to raise the retirement age ChrisC FIRE Related Public Policy 100 11-27-2012 10:13 AM
Sometimes you bite the bear and sometimes the bear bites you. calmloki Other topics 20 10-24-2008 03:38 PM
sometimes I get grossed out... ladelfina Other topics 7 10-31-2006 06:59 PM

» Quick Links

 
All times are GMT -6. The time now is 12:04 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.