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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?
does Mississippi Tax Social Security Income
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.
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.
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.
Is interest income included in earnings if at age 62 you are drawing social security?
No. Only earned income is counted against your Social Security.
Does Social Security disability income count as income for medicaid?
Social Security benefits (retirement and disability) count as income for Medicaid. However, Supplemental Security Income (SSI) does not count as income for Medicaid.
