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Social Security is a government redistribution program. It works something like this:
All people between the ages of 18 (threshold of adulthood) and 62 (age of "retiree") pay a tax based on their income to the Social Security fund
All people over the age of 62 collect a monthly check from the Social Security fund depending on their situation (married, number of dependents etc).
This essentially means the money is being redistributed from youthful wage-earners to elderly retirees.
Wiki User
∙ 11y ago
Wiki User
∙ 14y agoSocial Security is an example of income redistribution by taking a small amount of earned income and storing it over time.
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How is Social Security an example income redistribution?
Social Security is an example of income redistribution by taking a small amount of earned income and storing it over time.
Are rental investments considered income for social security?
They are income but they do not require you to pay social security on that income.
does Mississippi Tax Social Security Income?
No, the state of Mississippi does not tax Social Security benefits at the state level. Therefore, Social Security income is not subject to Mississippi state income tax.
Is social security considered income for v.a pension?
Social Security Retirement & Social Security Disability Insurance (SSDI) are. Supplemental Security Income (SSI) are not.
Is there federal tax on social security income?
This depends on what your other income is besides your Social Security Income. Dependent on your filing status and other income your Social Security Income can very likely be partially taxable. Up to a maximum of 85% of your Social Security income can be taxable on your Federal Tax Return.
Ask us anythingExamples such as Social Security welfare and disability benefits fall under which category of economic functions of government?
Social Security, welfare, and disability benefits fall under the category of income redistribution. This involves the government collecting funds from taxpayers and redistributing them to support those in need, such as the elderly, disabled, or low-income individuals. These programs aim to reduce poverty, provide financial security, and promote social equity.
Is annuity income counted against social security income limits?
A regular annuity which is not a 401K is counted against social security income limits.
How do I know if I have Social Security Supplemental Income or Social Security Disability Income?
One should contact their local welfare office to see if their social security is supplemental or disability.
Does an employee who is currently receiving social security income and is also employed have to pay social security taxes on his new income?
Yes
Does your wife's income affect your social security?
Absolutely. It affects her Social Security only.
When did you start paying income tax on social security payments?
Paying income tax on Social Security payments depends on your total income and filing status. If your combined income is above a certain threshold, a portion of your Social Security benefits may be subject to income tax. The rules for taxation of Social Security benefits have been in place since 1983.
Understanding Your Taxable Social Security Benefits?
These days, there are many elderly people who depend on social security as a main source of income. For some people, social security benefits are their only form of income. If this is your case, then you will not be required to pay taxes on your social security benefits. Social security benefits that are the only source of income for an individual do not need to be taxed. However, if your modified adjusted gross income exceeds the limit set forth by the IRS, then your social security benefits will be taxed. For a single person, the income amount is set at $25,000.
