Social Security taxes

Changes Proposed To The Way Social Security Collects and Dispenses Funds

by Staff | November 3rd, 2014

When U.S. citizens are no longer able to work, many depend on Social Security Disability benefits for income. The problem is a lack of funding is causing a threat of benefit cuts for recipients.

Estimates show that Social Security Disability benefit payments could be slashed by as much as 23 percent by 2033. Those cuts could increase another 5 percent by 2088.

These potential cuts in benefits have prompted lawmakers to begin developing solutions. One proposal discussed inForbes magazine—called the Social Security 2100 Act—calls for three major changes to resolve the issue:

  1. Changes to Cost-of-Living-Adjustment (COLA) calculations– The current COLA calculation system uses the consumer price index to measure inflation on goods and services, which is in turn used to determine the annual COLA. The problem is this system measures inflation amongst the entire population, while most Social Security recipients are elderly. The act calls for a new inflation measurement method—called the Consumer Price Index for Elderly Consumers—that measures inflation in areas where the elderly spend most of their money.
  2. Increases in the threshold of income that is taxable for Social Security– The proposal calls for increases in the amount of income you can receive from the Social Security Administration that is considered taxable. New limits could be as much as $50,000 for a single individual or $100,000 for a couple.
  3. Increased Social Security Tax Rate– Currently, a taxation rate of 6.2 percent of earned income is established for Social Security. Social Security 2100 Act calls for that rate to be bumped to 7.2 percent by 2037.

At Fleschner, Stark, Tanoos & Newlin, our Social Security Disability Lawyers are hopeful solutions are found and implemented soon.

Changes Proposed To The Way Social Security Collects and Dispenses Funds

by Staff | November 3rd, 2014

When U.S. citizens are no longer able to work, many depend on Social Security Disability benefits for income. The problem is a lack of funding is causing a threat of benefit cuts for recipients.

Estimates show that Social Security Disability benefit payments could be slashed by as much as 23 percent by 2033. Those cuts could increase another 5 percent by 2088.

These potential cuts in benefits have prompted lawmakers to begin developing solutions. One proposal discussed in Forbes magazine—called the Social Security 2100 Act—calls for three major changes to resolve the issue:

    1. Changes to Cost-of-Living-Adjustment (COLA) calculations– The current COLA calculation system uses the consumer price index to measure inflation on goods and services, which is in turn used to determine the annual COLA. The problem is this system measures inflation amongst the entire population, while most Social Security recipients are elderly. The act calls for a new inflation measurement method—called the Consumer Price Index for Elderly Consumers—that measures inflation in areas where the elderly spend most of their money.
    2. Increases in the threshold of income that is taxable for Social Security– The proposal calls for increases in the amount of income you can receive from the Social Security Administration that is considered taxable. New limits could be as much as $50,000 for a single individual or $100,000 for a couple.
    3. Increased Social Security Tax Rate– Currently, a taxation rate of 6.2 percent of earned income is established for Social Security. Social Security 2100 Act calls for that rate to be bumped to 7.2 percent by 2037.

      At Fleschner, Stark, Tanoos & Newlin, our Social Security Disability Lawyers are hopeful solutions are found and implemented soon.

      Are Social Security Benefits Taxable?

      by Staff | April 9th, 2014

      With tax day approaching on April 15, many American citizens are scrambling to prepare their tax documents for filing. But the millions who receive Social Security Disability Benefits may be wondering if they need to file taxes on the income received from the Social Security Administration.

      A release from the Internal Revenue Service offers an answer to that question and states that if an individuals’ only income was from Social Security or railroad retirement benefits, then a tax return may not need to be filed because that income is not taxable. If an individual has collected any additional income, his or her benefits may remain untaxed as long as the modified adjusted gross income is more than the filing’s base amount. This could require a tax return filing to be made, even if the income is not taxable.

      Taxable benefits must be included in the gross income of recipients. This can include portions of both child and spousal benefits.

      If any part of an individual’s Social Security benefits is taxable, they can request additional holdings throughout the year to reduce the impact.

      The Social Security Disability Lawyers with Fleschner, Stark, Tanoos & Newlin are aware of how complex the laws surrounding Social Security benefits can be. That’s why the firm urges anyone considering applying for benefits to speak with an experienced attorney. We can be reached to discuss your concerns and needs by calling 1-866-332-9372.

      Do you know where your taxes for Social Security benefits go?

      by Staff | April 29th, 2011

      April 29, 2011

      A letter to the editor on mwherald.com says the government isn’t using payroll taxes to build the funds for retirement or Social Security benefits, but rather, used to sustain the national budget.

      In the letter, it says that the fund for o Social Security benefits has been borrowed against, and upon receipt of payroll taxes that fund Social Security benefits, the Treasury converts them to “special issue Treasury bonds.”

      Read more.

      Is there something you don’t understand about how the funds for Social Security benefits are collected? Do you understand where your taxes go?

      If you need help getting the Social Security benefits you deserve to get your life back on track, the Social Security lawyers at Fleschner, Stark, Tanoos & Newlin can help.

      Man believes cutting Social Security isn’t necessary for national deficit

      by Staff | December 16th, 2010

      December 16, 2010

      An opinion contributer to politico.com believes it was a bad idea for President Obama to negotiate tax cuts to Social Security.

      It could affect Social Security benefits in the future.

      The contributer believes cutting Social Security as part of a deficit reduction isn’t needed because he says Social Security is in surplus for the next several years.

      Read more.

      Do you think tax cuts will affect Social Security benefits? How do you think Social Security benefits could be saved?

      If you need help getting Social Security benefits you deserve to get your put your life back on track, the Social Security lawyers at Fleschner, Stark, Tanoos & Newlin can help.