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If you have a pension plus Social Security what is the tax rate of the Social Security?
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.
Almost everybody, either through deductions on their paycheck or through self-employment tax.
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.
Possibly. See Tables 1, 2, and 3 on pages 2, 3, and 4 of Publication 501 to determine if you are required to file a federal return: http://www.irs.gov/pub/irs-pdf/p501.pdf… Check your state income tax return instructions or your state tax agency to see if you are required to file a state return. Of course, if you had taxes withheld and are owed a refund, you should file in order to receive the refund even if you are not required to file. Yes, I certainly do.
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%.
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.
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%
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.
Simple Common Sense: The only time you actually do WANT to file is when the IRS says you don't have to! They don't do that because it's good for you. They do it because i…t is more likely to be good for them. Certainly if you don't have to file, NOTHING BAD, in fact only good things, can happen by doing so. Federal Taxes are the same throughout the country. State tax laws are specific to each area. Whether you have to file a tax return (or pay tax) depends, in part, on your filing status, deductions, amount & type of income. There are no such things as "start and stop" ages, not having to pay because of retirement or on social security or working from home or a student. It is all addressed as a matter of "how much TAXABLE income." (Note: working isn't relevant either, as many people who don't work or are retired, or disabled, or old, or young, or in school, have income from many sources: savings, investments, etc. TAXABLE income is different than what you may otherwise think of as income. In most circumstances, you have to do many of the calculations needed to file a return, just to determine what taxable income may be). Likewise, there are no special or fixed rates for retired, student, doctor, sanitation worker, President, convict...whatever. The amount of taxable income after applicable deductions and adjustments determines the rate applied to your particular situation. The rate, as well as the amount, you pay changes as the amount of income does. You must file a tax return if you had net earnings from self-employment of $400 or more. This is your total self-employment income less the expenses paid in operating your trade or business, multiplied by 92.35%. If you weren't self-employed (paid on a 1099 or ran your own business) then you would always want to file a return to claim the amount withheld and shown on your W-2, which with lower incomes will always be refunded to you. If you are an individual who may be claimed as a dependent on another person's return, you are subject to specific filing requirements. Refer to the instructions in your tax package or refer to Publication 929, Tax Rules for Children and Dependents, or Publication 501, Exemptions, Standard Deduction, and Filing Information, for the filing requirements for dependents. All available at www.IRS.gov You must file a tax return if you received any amount of advance earned income credit payments from your employer during the year, or if you owe any taxes, such as: social security tax and Medicare tax on tips or group life insurance,alternative minimum tax,tax on qualified retirement plans including an Individual Retirement Account, or other tax-favored account,tax from recapture of an education credit, investment credit, low income housing credit, federal mortgage subsidy, qualified electric vehicle credit, or the native American employment credit. Generally, you must file a tax return if you are a nonresident alien with income from sources in the United States. For more information on nonresident aliens, select Topic 851 at the IRS website. Even if you are not required to file a tax return, file a return BECAUSE MANY, LOW INCOME PEOPLE HAVE MANY BENEFITS COMING THAT ARE KEYED TO FILING A RETURN. (Like stimulus checks). Also, the Statute of Limitations for when the IRS can no longer ask you questions about your affairs for a year only STARTS to run when a return is filed. Not filing, and they can bug you, (and assess a tax) for forever! Even if you do not have to file, you should file to get money back if Federal Income Tax was withheld from your pay,which if you were an employee most certainly happened OR you qualify for any of the following:Earned Income Tax Credit. The Earned Income Tax Credit is a federal income tax credit for eligible low-income workers. The credit reduces the amount of tax an individual owes, and may be returned in the form of a refund.Additional Child Tax Credit. This credit may be available to you if you have three or more qualifying children or if you have one or two qualifying children and earned income that exceeds $11,300. The Additional Child Tax Credit may give you a refund even if you do not owe any tax.Health Coverage Tax Credit. Limited to certain individuals who are receiving certain Trade Adjustment Assistance, Alternative Trade Adjustment Assistance, or pension benefit payments from the Pension Benefit Guaranty Corporation.
If you are on a disability retirement pension from government service which is not taxed will social security income be affected?
Yes it could affect the amount of your SSB that could become taxable income on your 1040 income tax return.
Yes it is very possible that the amount of pension income could cause some of your SSB to become taxable income on your 1040 income tax return.
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 amou…nt and the employer matches that amount for a total amount of 15.3%. 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 106800 and social security amount withheld would be 6621.60. 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 a self employed taxpayer the amount would be 15.3% on the net profit from the business operation.
Yes. Social Security is not a mean-tested program, but a form of government-administered pension (the retirement benefits, at least) that you paid into through FICA taxes duri…ng your working years. Unearned income such as pensions, annuities, 401K payouts, interest and dividends, gifts, etc., will not affect your Social Security benefits in any way. If you have not yet reached full retirement age (65 for people born before 1943; 66 for those born between 1943 and 1954) but continue working, there are some restrictions on salaries or wages, but once you reach full retirement age, there is no limit on this form of income either.
Yup, you can collect any pension money coming to you without it affecting your social security.
Whether you file or not depends on your yearly earnings. Call the Internal Revenue at filing time and find out the earning amount for that year,