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If you have a pension plus Social Security what is the tax rate of the Social Security?
The 2009 and 2010 tax withholding rate are the same. The amount your employer withheld from your earnings was 7.65% for the social security and medicare tax combined, which an…d the employer matches for a total amount of 15.3%.
12.4%. One-half, 6.2%, is withheld from wages. The other half is paid by the employer. The employee tax rate for social security is 6.2% (amount withheld). The employer tax …rate for social security is also 6.2% (12.4% total). The 2008 wage base limit was $102,000; it increased to $108,600 in 2009, and will remain at that base through 2011. FICA contributions, including various sub (categories of things like SS, Disability, Health, etc) are 15.30% of FICA wages. What is considered FICA wages differ from other wage considerations in many ways, (it has a top limit that changes regularly of about 97.5K, how pension contributions factored, State taxes, etc.). If you are an employee, the employer MUST pay half of the contribution (so you only directly pay 7.65%). If you're self-employed, the amount normally paid by the employer is collected through something called the "self-employment tax" when you file your income tax return.
According to IRS publication 54 (2007), pensions are "unearned income" and thus in the same category as capital gains, dividends and interest income. Withholding tax is not as…sessed on pensions, capital gains, dividends and interest.
The taxes that you are paying now for for the social security and medicare insurance program are being used to pay for the benefits that the current beneficiaries are receivin…g at this time and also some of the amount is being put into a trust fund that has some government assets for use in the future for your insurance benefits.
The social security tax rate for 2010 remain the same as they were for the tax year 2009. The 2010 cap is $106,800.00, which would result in 6621.60 (6.2%) being withheld. T…here is no cap on the Medicare insurance contribution amount, so the 1.45% amount will continue to be withheld on all earnings, and will be matched by your employer at 1.45% for a total 3.90% for the year.
Potentially, yes-it depends on your income level. The amount taxed could be very low. In general, up to 50 percent of your SSDI benefits may be taxed, which is determined by a…dding up one-half of your SSDI benefits plus all of your other income sources. For the 2012 tax year, taxes are owed on any amount above a base level of $32,000 for couples filing jointly and $25,000 for individuals. Additionally, SSA benefits can be taxed up to 85 percent if the total of one-half of your benefits and all your other income for the tax year is more than $34,000 if filing single or $44,000 if you are married filing jointly; or if you are married, filing separately and lived with your spouse at any time during the tax year.
Social Security tax is a flat 6.2% on the first $106,800 of wages; Medicare is taxed at 1.45% of all wages. 6.2%
Go to the IRS gov website and use the search box for IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits. Publication 915 is available on the IRS …Web site. Use the search box to choose the 1040 instructions. Page 28 of the 1040 instructions book has the Social Security Benefits Worksheet for Lines 20a and 20b of the 1040 tax form. If you received income from other sources, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status. For a single taxpayer the base amount (cap) is $25,000. Your taxable benefits and modified adjusted gross income are figured on a worksheet in the Form 1040A or Form 1040 Instruction booklet. You can do the following quick computation to determine whether some of your benefits may be taxable: First, add one-half of the total Social Security benefits you received to all your other income, including any tax exempt interest and other exclusions from income.Then, compare this total to the base amount for your filing status, if the total is more than your base amount, then some of your benefits may be taxable. From 50% to 85% of your SSB can become taxable income on your 1040 income tax return and would be added to all of your other gross income and taxed at your marginal tax rate.
The Social Security Act of 1935 was signed into law by President Franklin D. Roosevelt on August 14, 1935. The government began collecting taxes for Social Security in January… 1937, and began paying regular monthly benefits in January 1940. In 1939, the government added survivors' benefits and benefits for retired spouses and children; disability benefits were added in 1956. President Johnson introduced Medicare as part of his "Great Society" initiative. The bill was signed into law on July 30, 1965. Medicare began signing up beneficiaries on July 1, 1966.
Yes, pension and Social Security payments may be garnished by the IRS to satisfy Federal tax levies and judgments. Please see the links below for additional information.
Almost everybody, either through deductions on their paycheck or through self-employment tax.
The withholding amount by the employer from your earnings that are subject to the old age survivors disability insurance is 7.65% for the social security and medicare tax …amount and the employer matches that amount for a total amount of 15.3%. If you are an employee, the employer MUST pay half of the contribution (so you only directly pay 7.65%). If your self - employed, the amount normally paid by the employer is collected through something called the "self employment tax" when you file your income tax return. When you have one employer the amount of FICA Old Age Survivor and Disability Insurance for your social security would stop once your wages with the withheld social security amount reach $106,800 and social security amount withheld would be $6,621.60. For a self employed taxpayer the amount would be 15.3% on the net profit from the business operation. You do NOT have any cap LIMIT on the MEDICARE insurance contribution amount. The Employer Medicare 1.45% and the employee 1.45% the total medicare insurance amount of 3.9% will continue to be paid on all of you wages that are subject to the medicare insurance tax. For 2014: Social Security (OASDI) Program Rates & Limits 2014 Tax Rates (percent) Social Security (Old-Age, Survivors, and Disability Insurance) Employers and Employees, each a 6.20 Medicare (Hospital Insurance) Employers and Employees, each a,b 1.45 Maximum Taxable Earnings (dollars) Social Security 117,000 Medicare (Hospital Insurance) No limit Earnings Required for Work Credits (dollars) One Work Credit (One Quarter of Coverage) 1,200 Maximum of Four Credits a Year 4,800 Earnings Test Annual Exempt Amount (dollars) Under Full Retirement Age for Entire Year 15,480 For Months Before Reaching Full Retirement Age in Given Year 41,400 Beginning with Month Reaching Full Retirement Age No limit Maximum Monthly Social Security Benefit for Workers Retiring at Full Retirement Age (dollars) 2,642 Full Retirement Age 66 Cost-of-Living Adjustment (percent) 1.5 a. Self-employed persons pay a total of 15.3 percent-12.4 percent for OASDI and 2.9 percent for Medicare. b. This rate does not reflect the additional 0.9 percent in Medicare taxes certain high-income taxpayers are required to pay. See IRS information on this topic. Supplemental Security Income (SSI) Program Rates & Limits 2014 Monthly Federal Payment Standard (dollars) Individual 721 Couple 1,082 Cost-of-Living Adjustment (percent) 1.5 Resource Limits (dollars) Individual 2,000 Couple 3,000 Monthly Income Exclusions (dollars) Earned Income a 65 Unearned Income 20 Substantial Gainful Activity (SGA) Level for the Nonblind Disabled (dollars) 1,070 a. The earned income exclusion consists of the first $65 of monthly earnings, plus one-half of remaining earnings.
Read the part in your tax guide that has a simple equation for determining the the amount of social security to report. It is a small fraction of what you actually receive tha…t you need to report as income.
Social Security earnings are not taxed.