Social security is basically when the government takes a certain percentage of money from the working generation and gives it to the retired generation. When the working generation become retired, they receive social security. Social security started after the Great Depression, when the government needed to make sure that people had money stored away to live after they stopped working. People get certain amounts of social security depending on how much they and their spouses worked as young people, as well as what jobs and how much they gave to social security. The current problem with social security is that the baby boomers are now becoming retired, and there are more of them than the current generation of working people. There is not enough money to support these retiring people, and unless the government subsidies social security or takes other measures, it is likely to fall apart before people currently in their 30s and 40s become retired.
So basically, the idea of how social security works is that you put away money and you will get that money when you retire.
A form for employers to file their social security taxes.
The answer is Yes! Social Security benefits are non taxable but any other money you receive from sold land will have to be listed on your IRS form and yes you might have to pay taxes depending on the amount. If in doubt contact the IRS. Taxation depends on the money you get.
A W-2 form lists the amount of Social Security taxes that were paid during the year.
Social Security Supplemental Income (SSI) is not taxable; therefore, there is no method for withholding income taxes from it. To have Federal income taxes withheld from Social Security Benefits: http://www.ssa.gov/taxwithhold.html
A child who is a dependent and earns income must file a return if they earned the specified amount of money as mentioned on the income tax form.
yes, you will not pay any taxes.
To file self employment taxes you must complete a Schedule SE form and attach it to your 1040 form. If you have any employees then you also have to pay employment taxes such as Social Security and Medicare Taxes.
Only if you ask them to. In most cases, social security is not taxable so there is no reason to withhold taxes on your social security check. If you are working another job and collecting social security at the same time, it is possible to earn enough money that a portion of your social security will become taxable. If that happens, you may want to consider withholding some tax from your social security but in most cases it is not necessary.
Non-taxable means you don't have to pay tax on the benefits. The formula for calculating how much of your Social Security benefits are non-taxable is extremely convoluted and involves re-calculating your taxes and adding back in certain non-taxable payments like municipal bond interest and depends on your marital status and filing status. Anywhere from 15% to 100% of your Social Security benefits can be non-taxable. If you really want the details, refer to the worksheet on page 27 of the Form 1040 instructions: http://www.irs.gov/pub/irs-pdf/i1040.pdf
The purpose to track how much money one has made during a year and how much has been taken away due to taxes and social security. Filling out this form helps one receive a refund check.
employers and employees both have to contribute equal amounts of money into the Social Security Trust Fund
1099-G or Form 940 - Yearly