No tax on SS (social security, federal, states, support)

[Lawrence753]

Some bill in Congress now that wants to do away with taxing social security benefits. Anyone know what’s going on? Seems like something to interest us.

[PAhippo]

There's only 10 states that tax it now. Haven't heard of this bill but probably trying to impress voters and pretend to have accomplished something.

[Lawrence753]

Originally Posted by PAhippo

There's only 10 states that tax it now. Haven't heard of this bill but probably trying to impress voters and pretend to have accomplished something.

Their talking no federal tax.

[mathjak107]

they talk about all kinds of stuff that never materializes. i stopped paying attention to all of it.

when it actually comes to be m then i take an interest, until then its just noise

[hikernut]

Here's one article...

https://www.kiplinger.com/taxes/will...-be-eliminated

Social Security benefits used to be non-taxable. There is some logic behind this, since FICA taxes are paid with after-income-tax money just as in the case of a Roth IRA. I will be surprised it this makes it through Congress, but it would certainly be a pleasant surprise.

[moguldreamer]

It's an election year.

As surely as the sun rises in the east and sets in the west, Congress will propose things that give them column-inches in the press.

[509]

Originally Posted by hikernut

Here's one article...

https://www.kiplinger.com/taxes/will...-be-eliminated

Social Security benefits used to be non-taxable. There is some logic behind this, since FICA taxes are paid with after-income-tax money just as in the case of a Roth IRA. I will be surprised it this makes it through Congress, but it would certainly be a pleasant surprise.

I would rather have my IRA withdraws being taxed at the capital gains rate.

Both would be nice, but at $160/month I don't have much taxable income due to social security, and almost all of that goes to Medicare Part B.

When SS was made taxable the rationale was that the rich would pay the income tax, and the poor would not have enough income to be taxes.

Wonder why this rationale did not apply to ROTH IRA's??

[DeepImpact]

Won't happen. Congress has never met a tax it didn't like.

[leadfoot4]

Originally Posted by hikernut

Here's one article...

https://www.kiplinger.com/taxes/will...-be-eliminated

Social Security benefits used to be non-taxable. There is some logic behind this, since FICA taxes are paid with after-income-tax money just as in the case of a Roth IRA. I will be surprised it this makes it through Congress, but it would certainly be a pleasant surprise.

I agree. Given the way that the Government is throwing around money, supporting the "asylum seekers", I'm surprised that those bas***ds aren't considering eliminating SS entirely, and using the money to feed the "invaders".....

[TimAZ]

The other side of this proposed bill is elimination of the earnings cap on SS taxes. The cap would increase gradually from the current $168,600 until all earnings are subject to SS taxation.