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MichMan

(16,490 posts)

64. Did not know that

Sat Jul 5, 2025, 05:46 PM

Jul 2025

I am on SS with a couple small type hobby jobs while my spouse is working full time. When we file joint taxes, our income is aggregated together and after the Standard Deduction and withholding from earnings, we end up with a combined household tax liability.

I never knew the IRS was able to divert a portion of that to the SS Trust Fund based on how much tax I owed individually on SS. I don't recall ever seeing a line item for that on the form.

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What is wrong with the tax cut for SS recipients. Although I will save [View all] doc03 Jul 2025 OP

Exactly, they are shortening the life of SS. gab13by13 Jul 2025 #1

"My daughter has been planning for 20 years not to rely upon having SS." NCDem47 Jul 2025 #11

smoke and mirrors Yonnie3 Jul 2025 #2

Yup, they want SS to collapse before 2034. This hastens the date and Tadpole Raisin Jul 2025 #3

In my view the strategy is even shorter than that. Both the no taxes on social security, and the no tax on lostincalifornia Jul 2025 #20

The bill does not eliminate nor directly reduce taxes on Social Security Benefits Wiz Imp Jul 2025 #27

It gives some seniors an addition deduction on their tax returns. Ultimately it means ... CousinIT Jul 2025 #60

Not really. According to The Committee for a Responsible Federal Budget Wiz Imp Jul 2025 #23

Those that currently pay taxes on social security, would get those taxes back in the form of a credit on their lostincalifornia Jul 2025 #33

It is not a credit. It is a deduction. Wiz Imp Jul 2025 #44

How. praytell, is it going to "collapse"? It can't go broke. valleyrogue Jul 2025 #24

The SS trust fund invests in special-issue Treasury securities, Ocelot II Jul 2025 #46

I think if Harris would have taken up the issue doc03 Jul 2025 #4

Kamala Harris won the last election. gab13by13 Jul 2025 #9

Kamala Harris is our duly elected president, and I'm pretty sure everyone knows it deep in their hearts. BComplex Jul 2025 #14

Perhaps. But the promise to eliminate taxes on SS Benefits was a total lie. Wiz Imp Jul 2025 #28

Devaluation of the currency (inflation!) will make the end game worse bucolic_frolic Jul 2025 #5

Everything that Krasnov is doing gab13by13 Jul 2025 #10

And homegirl Jul 2025 #15

A llitle history TexLaProgressive Jul 2025 #6

Reagan started the tax on SS by taxing doc03 Jul 2025 #8

Yes, but it only applied to higher income beneficiaries, not those with modest incomes, and was part of the lostincalifornia Jul 2025 #22

Not double taxation. At least not when the law was passed. Wiz Imp Jul 2025 #34

Don't forget that Reagan did it with the approval of a Democratic House MichMan Jul 2025 #18

UI was also taxed for the first time. n/t valleyrogue Jul 2025 #25

U.I. Unemployment Insurance or compensation? TexLaProgressive Jul 2025 #51

You have to pay taxes on your unemployment insurance benefits. valleyrogue Jul 2025 #62

Republicans hate Social Security, they've hated it from the beginning. They've done their best to try and destroy it. Walleye Jul 2025 #7

RepubliSCUM hate everything that benefits "We, the People." MLWR Jul 2025 #16

No, it does NOT take any funding from SS. In fact it has nothing to do with SS. lostnfound Jul 2025 #12

Thanks for the facts. n/t valleyrogue Jul 2025 #26

You are partly right and partly wrong. Wiz Imp Jul 2025 #37

I copied this from Kiplinger, maybe another way to understand gab13by13 Jul 2025 #45

I stand corrected, thank you. I'm pleasantly surprised. Nt lostnfound Jul 2025 #48

NOT CORRECT. RandomNumbers Jul 2025 #53

? Taxes paid on Social Security DO go back into the Soc Security Trust Fund, not the treasury.. CousinIT Jul 2025 #61

Did not know that MichMan Jul 2025 #64

It is a Machiavelli con along with the "no tax on tips", both set to expire in 2028 when trump's term ends. lostincalifornia Jul 2025 #13

There's nothing about SS in the bill............... NGeorgian Jul 2025 #17

Yes it does. The tax bill is a thousand pages long. lostincalifornia Jul 2025 #19

Super misleading. The bill does not mention SS Benefits even once. Wiz Imp Jul 2025 #38

It is a credit which offsets the tax you pay on it, no? lostincalifornia Jul 2025 #50

No. It is not a credit. It is a deduction. Wiz Imp Jul 2025 #58

No. Because of the bill being a reconciliation bill they actually could not touch the SS trust fund, so they... Ol Janx Spirit Jul 2025 #21

Correct. You stated it pretty succinctly. Better than I did. Wiz Imp Jul 2025 #40

This provision DOES move up the insolvency date of the SS trust fund RandomNumbers Jul 2025 #54

Thanks! Ol Janx Spirit Jul 2025 #66

It's an illusion. There's no actual tax cut for SS income. Ocelot II Jul 2025 #29

Then it doesn't affect the SS trust fund like the OP is claiming. n/t MichMan Jul 2025 #30

I'd say that's correct. D. Spaulding Jul 2025 #32

That's correct, except indirectly wrt total tax revenue. Ocelot II Jul 2025 #35

That part is unclear. The Committee for a Responsible Federal Budget says: Wiz Imp Jul 2025 #41

Yes. it does RandomNumbers Jul 2025 #55

Since you get that extra deduction, whether you're D. Spaulding Jul 2025 #31

True, but it's being used to claim that Dear Leader in his mercy has removed the tax on SS income. Ocelot II Jul 2025 #36

It is only applicable to people over 65 MichMan Jul 2025 #39

But there are also millions of people under 65 collecting SS benefits who get no tax breaks at all from this bill. Wiz Imp Jul 2025 #42

Still, it's not connected to SS. A couple million people or so will never get SS Ocelot II Jul 2025 #43

I went back and looked at my taxes from last year, gab13by13 Jul 2025 #47

Yup. That's how it works, but Krasnov wants us all to think that he, in his munificense, Ocelot II Jul 2025 #52

Agreed, but tax might be at a lower rate. OKnow Jul 2025 #65

I have read here numorous times SS isn't doc03 Jul 2025 #49

You are correct RandomNumbers Jul 2025 #56

Wouldn't that be true of any other tax deductions taken by seniors on SS ? MichMan Jul 2025 #73

It doesn't actually change SS funding. Voltaire2 Jul 2025 #57

It is a cut to money going into Social Security, according to this article: CousinIT Jul 2025 #59

The Social Security Fairness Act legislation passed last year did shorten the trust fund solvency MichMan Jul 2025 #63

It's a deduction taken at tax time, not a monthly increase in your check. RandomNumbers Jul 2025 #67

If I currently have taxes withheld from my check, and no longer need to, why wouldn't that be a increase every month? MichMan Jul 2025 #68

Only if you reduce your withholding accurately based on this provision RandomNumbers Jul 2025 #70

My wife and I are retired PCB66 Jul 2025 #69

Saving your 100K+ household $ on the backs of the disadvantaged. RandomNumbers Jul 2025 #71

Not taxing a greater portion of SS has NO ... Dave says Jul 2025 #72

The comments here are fascinating MichMan Jul 2025 #74