These frequent tax code changes are disrupting my long-term investment strategies. Are there ways to structure my investments to be more resilient to potential tax code modifications?
I honestly think America needs a completely restructure of their political system. It is just not working. Trump and Biden being elected out of 300 million people to run the country is evidence for that too.
This is why the US should elect more progressive politicians, who know how to manage budgets and give us (yes, pur country's initials literally spell out that pronoun) much better tax credits in return for better public education and better public healthcare. but since these are nonexistent, my husband and I are being guided to finance our retirement and healthcare through a diversified investment portfolio.
@@williamDonaldson432 How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
Most Americans cannot retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?
Agreed the role of advisors can only be overlooked, but not denied. I remember in early 2020, during covid-outbreak, my portfolio worth around $300k took a slight fall, apparently due to the pandemic crash, at once I consulted an advisor in order to avoid panic-selling. As of today, my account has yielded big fat yields, and leverages on 7-figure, only cos I delegate my excesses right.
this is huge! mind if I look up the consultant that guides you please? only invest in my 401k through my employer for now, but enthused about diversifying my investments for a prosperous financial future
I need a way to draw up a plan to set up for retirement while still earning passive income to meet my day to day need and also get charged lesser taxes even while in a higher tax bracket.
Don't put all your eggs in one basket; instead, diversify into different asset classes to mitigate risk. If you lack extensive knowledge, consult a financial advisor.
Accurate asset allocation is crucial with an Experts guidance. I have 850k in equity, 300K cash earning 5.25 interest, 685k in 401k, 250k cash account, 120k in car assets ( paid off cars) Gold and silver bars. age is 48. My advisor helped me realign my portfolio to my risk tolerance and it boomed overtime.
You do understand they take social security out BEFORE they tax out your federal taxes? That said I think there should be NO TAXES on social security for people who have worked hard all their lives
@@ranjanty The only reason we have a border problem is because my fellow Republicans in Congress, at the direction of Trump, think it’s politically expeditious not to address the problem until he’s reelected president, and unintelligent people like you buy into it. My fellow Republicans in Congress think the American people are so stupid. They’re talking about this openly in Congress. Being stupid is a choice, you don’t have to make that choice. You can use the brains, Almighty, God, gave you, and stop acting stupid.
You can thank that nitwit schemer Ronald Regan. He sold his soul to the billionaires for his slice of the pie. Now his son and legacy is a dam proud atheist and proud of it. Just get all you can while you can and dam everyone else. No ethics at all.
@@germanarturo11 Biden promised to make the big sharks 🦈 pay more taxes. But he didn’t reveal that he would go after more little guppies first 🐟🐟🐟🐟… the easy prey!👺💰
If our politicians would stop stealing money out of SS we would be fine but some sends up a bill 5000 pages and toward the end of the bill they slip in a page and two lines and it’s to get SS money to do some stupid project in his state. So if we go back threw the years and add interest and we would have so much money in SS that it would never run out of mine and give SS people to get a 500 raise !!
Don't know why Biden was brought up as the fall guy, typical though, but they did say Newt Gingrich was the deciding vote. It was a Bipartisan decision. However, it was President Regan who signed it into law. They say this is NOT tax that is paid in by each employee BUT is the percent that the EMPLOYEER paid in, of which they got to DEDUCT from their business which Uncle Sam claims was a double deduction. One for the employer contribution and one for the employee's percent, which they rec'd at the time SS is taken. What is a travesty, as was stated, there was NO annual adjustment for inflation factor, as there fortunately is for SS benefits. RIDICULOUS!!!
@@SandfordSmytheBasically the entire government. Do they produce a product of value? Do they earn their money like the rest of us? No - instead they print money on the back end and infinitely tax our nations wealth on the front end.
Your dollars were worth a lot more 40 years ago than they are now. And nobody I know invests for 40 years with the goal of getting back exactly what you put into it.
Another tax no one talks about is how your social security benefit is reduced by medicare premiums based on your MAGI which is a total of taxable income plus non taxable interest. If this MAGI is to high you automatically give up a major part of your social security benefit. 85% of your Social Security benefit gross amount can be taxed when you only really get a net amount after medicare premiums are deducted. This is another tax screw job.
Yes this sucks big time. If you retire from the NY State Retirement system you get reimbursed for the Medicare premiums because your NY State Health insurance already covers those premiums. My husband is retiring in July 2023 and we both will benefit from this from his health insurance.
You are absolutely correct. I never thought or knew about this atrocity tax before I removed all my money out of my IRA over a span of 2 years. My medicare part b premium almost doubled. The government is not your friend. fjb
@@slimdude2011If your total adjusted income is over a set % it used to be called a "pickle" which kicked in effect early year, then gets readjusted, eitther July 1st I believe (start of most State budgets), or Sept 1st ( beginning of Fed year budget). I'm sketchy on dates, I retired Sept, 2004 due to lung & back disabilities.
It took 3 guys 49 minutes to answer the question posed in the title. Their answer is contribute/convert to Roth. And, if you have a high deductabe health insurance plan, contribute to an HSA.
Look, these guys are not really being forthright with you here. Most people do not have thousands of dollars a year to put into a Roth IRA nor into a Health Savings Account. If they did, they wouldn't need social security to begin with. Most people in retirement live on social security and a small retirement income, or maybe work a little here and there, or have a part-time job. You pay social security tax on the adjusted gross income on your tax form. Say you make $18,000 a year in social security income and have $12,000 a year coming in from your post employment retirement fund. That is $30,000 a year total income. On your tax form, you only count 1/2 of your total social security added to your other income sources. In this example, 1/2 of $18,000 is $9,000. Now you add that $9,000 with your $12,000, and your total adjusted gross income is $21,000. That is less than $25,000, plus you have not even counted in your annual deduction and if you are over age 65 you get an additional amount added to the annual deduction. Subtract that, and you will end up somewhere in the neighborhood of $7,000 for your actual TAXABLE income, which is far, far less than $25,000, so you will pay no taxes on any of your social security income. As long as 1/2 of your social security plus any additional funds total less than $25,000, you DO NOT have to pay any tax on your social security. It really is not that difficult to understand, and you really have to make quite a bit of money to pay any tax. And even if you go over the $25,000 threshold, when you add in your standard deduction, you can still have a pretty good income in retirement and still pay no Federal Income Tax. If you work some and don't make a whole lot of money, you might even get a tax refund! You can play around with the numbers based on your own social security to see how much additional income you can acquire before you have to pay a penny on your taxes. If over age 65, use tax form SA, and that gives you a higher deduction to play with.
We have always been slaves most of us are brain washed and just didn't realize. Think about it the world governments have told us a piece of paper is of value when in reality its just paper. Now we are going to labor to earn a worthless piece of paper because they said it is of value. In reality no body or governments should own land as it was meant for everyone to live on growing produce or raising live stock without being taxed. But we the people gave them the power and has allowed it.
One of my adult kids asked me why I had given him a social security number? I said, ‘honey, I never even thought about it…the staff at the hospital gave daddy & me your social security number before you left the hospital.’ ‘Mom, the government owns us once we got them.’ I had never really thought about it that way. I inherited my folks estate and I’d be taxed for the third time if I withdrew any money early. RIDICULOUS
I don't believe in luck I believe in trust and understanding. I've been trading forex for some months now and I've made good amount of money of over $78,100 with her simple strategies of trading. Meeting with stacy has been one of my best experience these past few months and am expecting more withdraws from her
I have incurred so much losses trading on my own..I trade well on demo. But I think the real market is manipulated. Can anyone help me out or at least tell me what I'm doing wrong
You are so right, I mean their salaries begin at $174,000 right off the bat!!!! Imagine what they make when they are still "working"" into their eighties!!! They dont care because they "work" until they die!!!
You’re so right , all they care about is themselves, and the next Election Day ! Our country is in deep trouble, glad I won’t be around in 50 years to see what shape it’s in by then, or have any grandchildren to live through it !
Boston Tea Party was for paying taxes to England without any representation in British Parliament…”No Taxation without representation “ protests …part of what started the US war of Independence from England
NO.....Merchants( dressed as Indians) raided a ship with imported producted (mostly tea) that had a heavy tariff imposed on it that subsided the import company British West Indias) which was basicly a colonial "Trickled Down" levied tax
What is hard to understand is this, I started working at very young age and contributed to SS for over 50 years. Never collected unemployment. I have never been unemployed. I turned 65 and decided to file at 67 and 4 months because they said there will be no penalty if I continued working and there was no limit on how much I could earn. They charge me over $600 per month for Medicare. I’m so upset. I know people that never worked in US and they received $$$ plus they get Medicare and medical and they don’t have to pay anything. It so unfair.
I think there are a lot of unknowns here in your post. 1. We have a system in place that is an earn it system. The more money you earn and longer you earn it, the more money you will have to withdrawal. 2. Our system is not based on whether you used unemployment dollars. 3. When retiring it is best to consult an advisor or read the SSI website to understand the financial reality after you stop working and how your age affects what you are entitled to and how much health insurance will cost you because that is different than Social Security money.
Your $600/month Medicare needs an explanation for why. To collect SS and Medicare, you have to have paid into into it. You may be talking about welfare kinds of payments.
Oh no, you were misinformed. A person can still work while receiving their SS benefits, but there is a limit that you can make. If you earned over the limited amount of money from your place of employment, if will definitely impact and reduce the amount of your SS. If you're working full time with 40 hours or more, I suggest that you begin to look for part time employment, so your gross pay is low enough that it will not reduce the amount of your Social Security payments. If you've still needed to work full-time, then you shouldn't had applied for your SS, until you were ready financially to fully retire.
When you turned 65, did you sign up for Medicare? My husband paid his Medicare when he turned 65, but he didn't claim his Social Security until he was 70. If you don't pay you Medicare premiums at 65, then the longer you go without paying, the higher your premiums will be.
Did they charge you $600 a month for Part A Premium or Part B Premium or for both because you either 1) didn't pay in SS and Medicare Taxes long enough from all your W2 or Self Employed Taxes (for over 10 years Part A would be Free and not $500 a month) and 2) Your current Adjusted Gross Income (AJI) is considered High and above ~ $97,000 and if you go to MEDICARE or Social Security website you can learn from them why they charged you high Premiums (based of your 2 Years Ago Tax Return and Income) and you can request an Appeal Form from Social Security which determined your Part A and Part B Premiums if your Income is significantly lower now than 2 years ago. Also, you can verify with Social Security that all of your years of work has been counting with them officially and they have a record of each of your past job and Taxes withholding by your Employers.
So...this is my first time to listen to you guys. I'm about 15 minutes into it and I can tell right now that it's going to take more that a little getting used to! So typical of getting mutual admiration group together! Not only that...ALL THREE OF YOU SEEM TO HAVE BEEN INFLUENCED BY YOUR KIDS AND DEVELOPED A.D.D.!!! GOOD GRIEF! FINISH A THOUGHT!!!
Gosh! I thought I am the only one with the same sentiment [as yours] about their "style". I had listening to them once a while ago, and found it exceedingly difficult to follow [them] ... there was just too chatty and too much stretching out a thought that I got lost along the way. As such, I didn't care to listen to more of their shows and soon forgot about them. Today, YT has "recommended" this video, and based on the title, I decided to check it out. Blah! Now I remember these chatty guys wasting my time! 😤
Exactly. Should be a 10 minute video and 3/4ths of it, just skipping through, is contribute to a ROTH IRA so that the money you receive in retirement has already been taxed. And then the rest is contribute to an HSA. That's 5 minutes tops. I thought it would be advice on what you can do throughout the current tax year,.. like contribute to an IRA,.. the $7k reduces your AGI, etc... and things like that,.. but no 50 minutes of a circlejerk. So glad I didn't waste more than 5 minutes on it.
The Dems are planning to do something about this fact. Vote for Joe Biden Again! Way Past Ignorance is Bliss! Some ignore, others are simply "Dumber than a Mud Fence"!
The reality in my financial world is that taxing even 50% (@12%)of my social security being counted DOES REDUCE MY ANNUAL DISCRETIONARY INCOME BY $1,200+ ! .. Your information doesn't seem to apply to senior citizens who are shocked by the expense of part of their social security income.. that $100 a month may mean nothing to you but for a lot of people that amount of money would pay for their electric bill or their insulin
why did you leave out the Ronald Regan was president the one that signed a bill to tax social security ...but made sure to include Al Gore and Joe Biden ? Are you guys being participen ?
1984. When Ronald Reagan was POTUS. He (and the Republican congress) did that. They also took away personal loan and credit card interest deductions. The medical deduction was over 5% of a person's income, increased to 7.5% by them also. And to mention any state sales tax. All the deductions that helped us work our way from poor to middle class a little faster.
Well yes but you must realize that states that do not charge income tax will get you another way.. by much much higher sales taxes or real estate taxes. Ain’t no free lunch, my friend.
I just received an inheritance , part annuity, life ins, IRA and sale of a beach home. I have to start taking out from the annuity by next yr and have it all taken in 10 yrs from when my cousin passed. We also have our own Roth Ira’s. I really never knew the difference between regular vs Roth IRAs. I already am on disability ssa due to Lupus and it’s complications after yrs of paying into FICA. But, because my husband makes over a certain amount, the IRS is taxing 80% of my disability (which was a tax I paid when working). It’s basically double taxation.
Remember, it's only half of your SSDI is taxable, not the full amount. You don't pay taxes on the full amount! You and your husband may want to start filing separately on your tax returns (if applicable) to lower the income, to prevent from paying taxes on your SSDI. You have an option to have monthly payments withheld to the IRS out of your SSDI, so you won't have to owe at the end of the year which may be more convenient.
A Congresswoman from MN. Introduced “the you earned it, you keep it a few years ago to take care of this problem. Where does the bill stand and who is holding this up?
Guys! PLEASE post a list of these. We all KNOW you want people to watch/listen, but I got 15 minutes into the video & you still haven’t gotten to a list of how to avoid SS taxes. Not exactly motivation to watch/listen…
There should be no taxes on any person past age 70 on Social Security. I feel the same in taxes on your home you have lived in for 52 years At age 75 I pay almost $3500 a year out of my SS. I don't have a retirement fund like a IRA ot 401K
we involuntarily pay into the system, give our $$$ to the government to spend with no interest and then we get taxed on the money when we collect it back. I'd rather keep my money and invest it the way I want, not rely on the government to manage my retirement funds and change laws that prevent me from getting my full contribution.
Agreed100%! If you die before u collect any SS monies, the gov keeps it! Why can't monies I've paid over 40-45 of working be paid to my son?? Legal thivery!
This is such a simple subject that you guys put a lot of energy into making it seem complicated. So you can make money on our backs. Financial planners are basically scammers.
Exactly. Should be a 10 minute video and 3/4ths of it, just skipping through, is contribute to a ROTH IRA so that the money you receive in retirement has already been taxed. And hten the rest is contribute to an HSA. That's 5 minutes tops. OI thought it would be advice on what you can do throughout the current tax year,.. like contribute to an IRA,.. the $7k reduces your AGI, etc... and things like that,.. but no 50 minutes of a circlejerk. So glad I didn't waste more than 5 minutes on it.
Obiden has never served our country in a favorable way.......he has, however, been self serving as he has become a multi-millionaire on a Congressman's salary that most will only dream of.
As I said to another MISINFORMED complainer… Biden does NOT set tax rates. He does NOT go to the Fed and say, oh let’s charge retirees more taxes on their SS. Nor does he tell the corporations and companies how to make maximum profits on their goods. That’s what we’re facing now… obscene record profits on their goods and services so THEIR bank accounts swell to astronomical levels. After all, they have to make sure their CEOs earn their multi-million dollar bonuses each year!
Those taxation thresholds on Social Security benefits (starting at 25K) have another name. It's called means testing. So, when politicians tell you they want to start imposing means testing on Social Security, they are lying because it's already happening. They've already done the same thing with Medicare, by progressively raising the Medicare premiums for middle and upper income retirees.
Has any one ever thought that we have already paid taxes during the working years. During the working years you pay taxes on Gross Income. Gross income includes income which includes the Social Security deduced during your working years. Isn't that double taxation???
Means testing is not the worst concept, but the way we apply it is. If the 25k were raised to a common poverty standard and the mandatory Part B was not taxed, it would be more fair. And to simplify, cut out the loopholes, the 85% rule, the standard deduction, and reduce the tax itself. Why is that so hard?
@@networkteacher1 I totally disagree with means testing. The middle class is expected to save extravagantly for retirement, but if you do, they want to punish you by taking your base SS benefit, so you are unable to maintain your lifestyle. He11 to the no. I also strongly oppose applying different COLAs based on income, another sneaky form of means testing. Here's how you fix the system. Slightly raise the retirement age over multiple decades based on life expectancy, as was done in the 80's. Slightly raise the payroll tax (both employer and employee) contribution. Apply both the Social Security and Medicare tax to all forms of executive compensation. The wealthy are able to game the system on income taxes, so I have no problem giving them no wiggle room on these mandatory taxes, plus they are the direct beneficiaries of uncontrolled immigration, so they should have to foot the bill.
We ALLOWED this and we must stop it!!!!!!!! No tax on SS,NO TAXS FOR ANYONE ON SS,IFYOUNARE OVER 70 NO MORE TAXS!!!!!!!!!!!!!! Set a limit of 100,000 ADJUSTED yearly!!!!!!!
Guys this is truly a disgrace and a real problem for us seniors. We are back in the work force so how will this help us the poor. I am a veteran of age 78. And returning back to work force a homeowner a salary of and SSN of approximately $1750.00 a month. Will I be taxed on my SSN of $1450. Monthly? The balance is what I receive from returning to work of 1 year at age 78. Really wants to retire and enjoy my home.Actually retired aNov of 2019 before COVID. Due to food prices and inflation returned to work to supplement my income of SSN .
Love the show. I have been applying your discussed strategies for the last few years and more recently with a financial advisor. My pet solution which no one has addressed is to force Congress through a loud grassroots movement to apply COLA to the numbers on the Social Security Worksheet for each and every year since 1984. This would raise the miserly 32k to about 80k relieving most of us from the painful taxation of our Social Security. Care to take a leading role in this effort?
Sadly, you are not alone in this solution. Yet for years since 1983 Majority in both branches did deliberately Designed How to collect more Taxes from unsuspecting Older Retired who voted for their own destiny in 1980s and the Social Security Act was signed in Stone with now most likely bipartisanship as they are not going to give Older wealthier retired people an easy way out Tax Break, why should they when they get their revenues from those who are least likely to do anything about it, including selecting those who support retirement and older folks to at least be Taxed with Adjusted Tax Brackets on SS and adjusting them retroactively back to 1983 in line with COLA and CPI-U or even Real CPI similarly how they adjust annually Standard Deduction for Inflation. Unfortunately, until there is enough Smart retirees and Smart Younger Relatives of Retirees would push for such Tax changes, more folks on the poorest end of SS would pay more Taxes to raise revenues again (as they already did pay SS and Medicare Taxes of 15% together with their Employers for years of working).
I believe you can convert to Roth IRA at any time, I say the soonest the better because you HAVE to pay taxes when you do the conversion. 59 and a half is to start withdrawing the money from your IRA without penalties, but if you convert your IRA to a ROTH IRA at age 40 or 45 for example, you will not be charged the early withdrawal because you are putting it in another retirement instrument, BUT, remember, you will have to pay the taxes that you did not pay when you claimed that deduction, plus all the interest or gains you have made until that moment in time. After this, after you convert to Roth, all your principal and interest you make is tax free.
I think the other consideration is IRMAA. When SS calculates your Medicare part B premium they use the last couple of years of your tax return. If you have done the conversion in those years it will increase your MAGI and make it look higher than it really is and might increase your Medicare part B premium.
If you make over limits you pay tax on 85% of you social security. Lower income is the only way to cut tax bill. This video is just a way to get hits and make money. I make 150k+ and I pay on SS, nothing I can do but wright check.
Had a 401k in 1984. The other ugly truth about traditional IRAs: if your IRA has been invested in something that would have been taxed at long term capital gains rate instead it's going to be taxed at the higher ordinary income rate when it's withdrawn.
True and it bites. The bright side is that you get to benefit from Uncle Sam's cut, DCA'ed in and compounded over years. I do shorter plays in those accounts to take advantage of the tax deferment and cultivate long-gains and qualified dividends in a brokerage account with o% tax at my income level.
Bernard, it is not a value to speak so quickly that people cannot understand. It is a teenie bopper thing to speak quickly. I have to leave the program.
Your explanations are confusing. Are you talking about more of my retirement being taxed so that I will get less money after all the calculations then I must believe that I am being taxed twice on the same money. Saying something that a portion of my benefits will be taxed twice. To that I respond NO! You keep giving us more money because of inflation and taking that money back through making it taxable. This is criminal. Then you say that the money that is taxed when I earn it and never is never taxed again is taken away a little more each year. So I get a COLA increase when there is inflation. I am retired so I am not getting all of my COLA dollars. It gets taken back by the government. That is not a cost of living allowance. So the government is giving us an allowance to offset inflation but then the government taxes my inflation offset and the government takes all or at least some of our inflation offset and we are not fulling getting the inflation offset and this is all taken back and we are penalized for paying the inflation with less than the money we thought we were going get to help with inflation. "Here is some money so you can offset some of inflation. By the way we will be taking this inflation offset back by taxing the money you are giving us. I am going to pay you all back by voting for those senators and representatives who fight this snake oil logic. I will not vote for any politicians who advocate and vote for this smoke and mirrors. Let find a way to remove obfuscation from your vocabulary because you sound like a used car salesman.
How the sausage is made as to how to avoid paying tax on your SS is one of the most hidden topics for retirement and retirees. There is no hard and fast rules because every has saved in varying percentages and amounts in different retirement buckets (taxable, IRA/401k etc, Roth). The calculation is this unkown thing for most retirees. But if you understand it, you can know exactly how much to take out or your IRA and pay no taxes along with your SS. There are spreadsheets for this, but is rare to find it.
I will post a website on where to find a spreadsheet for this...if the Wise Money Show says I can post it. You would have to pay for the spreadsheet, but I can tell you it is well worth it for the insights into your taxes. And no, it is not my spreadsheet.
In reality, there is no avoidance of not paying taxes on your SS, if your AGI exceeds the limited threshold amount depending on your marital status. Everybody doesn't have to pay taxes on their SS, it depends on the person's income.
@@slimdude2011Yes - the only way to avoid these taxes is to make sure your income is very low, but it is hard getting by at that non-taxable level. Right now I am avoiding paying any taxes on my Social Security or on CD interest or on IRA withdrawals - simply by limiting my income. All I have to do to make sure I don't go over the limit is to use the formula they mentioned: add 1/2 of my Social Security plus all other income (currently CD interest and IRA withdrawal - not Roth). As long as that total ends up being less than 25K (single filer) my Social Security is not taxable and is then not included on my Fed tax return - and with the standard deduction subtracted from the remainder of my income I owe zero taxes. But who would want to live at that income level? Eventually when I change from widow's Social Security to my own (planned - because it was and will be significantly higher) and have the forced RMDs on my IRA beginning at 73 my taxable income will increase so that I will end up once again paying Fed taxes, including on part of my Social Security.
I think social security should not be taxed or the levels of the tax should be lowered or people should be allowed to keep more of their income. I can barely make ends meet now on 45 thousand a year with everything is gone up so high. Why am I being taxed so high at my level? It's ridiculous. My draw on my Ira is taxed? What are you talking about
So my Social security is only 1/2 of my income my Ira was converted to a annuity by my investment advisor and both being me up to 45 grand a year. Yet I have to pay 1,700 back in taxes? I'm already tight
Social Security was only meant to replace 50%-60% of your working income. Your own contributions to your IRA or investments while you are working, are supposed to make up the difference.
I've watched a few video's on this very subject. If I'm not mistaken technically you're not paying taxes twice on whatever portion goes over the 50 or 85% rule. Reason being is the Social Security fund is funded by the workers AND the employer. When you contribute your 6.2 percent you are paying taxes on that money, however the 6.2% that your employer pays is NOT taxed. If I'm correct, that means that all of the contributions from the employers are not taxed. The biggest issue with all of this is the fact that those amounts where you start getting taxed on your SS benefits haven't changed since it's inception in 1983. Totally ridiculous. It's the dirty little secret that no ones paying attention to.
@@jeanetteorosco8153 I guess you can look at it that way if you want to. I think SSA wants "someone" to pay the taxes on the employers contribution. They're going to get their money one way or another.
Who can live on $25,000 per year? Rent is at all time high. Food - Utilities- Meds?? Transportation? SS is a joke! The government has borrowed ( stollen) from the fund- never replacing it- so then the Gov comes up with another way to steal from you again- while this Gov is giving aid to another country for a war we have no business in? Ppl here are struggling- especially the old and disabled. Now they want to tax our SS? Someone
It was 88 bipartisan votes. Why those other senators aren't mentioned? Hmmm Back in 1983, the trust fund for retirement benefits was running out of money. That was going.
We pay for other people's social security, and, we pay for other people's education (teacher's salaries, school supplies, new school buildings and the maintenance of those buildings, and so on ) and other people's streets and roads, and a multitude of people's other stuff.
We do not need to tax social security. What is needed is for congress to remove from the tax code all deductions except for the number of dependents which is needed for the poor and meddle class.
A tax free state would be great! Not our case no matter what they tax us every turn . Stores electric gas food local an land taxes . School tax, insurance, everything . Ya know there are people who have died still getting bills . There is no escape , no matter what you do . And those bills are still taxed . So I guess it's a live, pay, and then still be taxed with all your left over bills after death . It's a death trap . . Taxes no matter what ...🤔
Social Security income should NOT be taxed. That money was taxed already when gov. took it from us. That's our money from already taxed income. We shouldn't have to pay two taxes on our money. So...who's on first? :)
Well, this didn't help me at all. I don't have an IRA (I don't work and I'm married) and I'm not eligible for an HSA but I'm eligible to take my Social Security. It appears that without those two things, I will have to pay the taxes on my social security. Disappointing.
No one should be controlled over their income. What they can and cannot do, nor have income taken from them. I heard it use to be that you could start new IRA accounts with saved income or from dividends earned from investments, but that now it is not allowed unless you are employed. Problem needs resolve.
Police state in all the forms! Too many cowards and sheeple following politicians and political parties rather than Jesus! Rise up and join the fight against principalities and powers of this world. Don't be mislead into thinking we are the good guys just to keep getting richer. The eye of the needle is a tough gate to enter.
Good for you for saving money! Interest income is usually taxable, but some is not. Municipal bonds, for example, are not taxable at the federal level, but they might be at your state/local level. Distributions from certain life insurance annuities are also not taxable. If you invest your extra funds in stocks that don't pay dividends or in gold, silver or artwork, the increase will only be taxable when you sell. It might be worth doing some more research and/or consulting a financial planner to learn more about your options.
Fallacious argument. Social Security is not a retirement fund you pay into. Your payments go towards paying people who are currently drawing Social Security. When you elect to take your social security, it is not "your money" coming back to you, it is money (theoretically) that is being paid into the system by current workers.
In NY State we can take out $20,000 per year tax exempt on private pensions, 401k , 457b and other retirement accounts. The withdrawals have to be spaced out i think in the year like $10,000 in Jan and $10k in December the money does have to be reported on your taxes but it is exempt from any taxes.
I get about 2400 Soc Sec per month. Had to draw out $ for major house appliances and ended up having to pay 3500 in Fed taxes for 2022. Could I have avoided this? Dwindling annuity now about $50,000, had to draw out MORE to pay taxes..vicious cycle.
I was told that if my SS was under $25 s year that so didn't have to pay taxes. Is that true. I haven't filed taxes since the 80s. Should I be worried? I started out on SS disability in my 30s. I am now almost 39.
Carla Bircher - I never used to file either because I was under the limit for personal income. My late Dad asked me if I was filing. I told him no. He said, ‘honey! File! You’ll get money back.’ Doesn’t it come out even no matter which way you stir the money? And now that I also have an inherited estate, I feel screwed!
Why don't people understand how CPAs lobby for tax complexity? Tax consultants are a big lobby working to create this huge financial system and driving government corruption.
Gentlemen, listen to Yourself! You make the problem of 85% by explaining taxes poorly and scare people with your technique. Find a better way. Explain it better, it is you, not the listener.
I would have liked some commentary for other than Corporate America wage slaves. Business owners that operate using a C-corp. can control their salaries or distributions, for example, or can access funds via non-taxable loans from the company, thus paying zero taxes on SS benefits.
We have all IRA's converted or still contributing as ROTH. BUT if one spouse is still working and income is over 32K, the spouse collecting SS benefits will be taxed accordingly. Can you speak to self-employed/Solo ROTH 401k--does this differ from a ROTH or 401k when figuring income sources for social security benefits? Both my husband and myself have had an HSA for years. He spends his down, I've saved mine, untouched to use as a retirement account. I've talked to him numerous times about this strategy and he has a hard time wrapping his head around the idea. Because of the information you provided in this video I have one more nugget to present to him--tax savings in retirement when collecting SS benefits. Thanks so much for valuable and easily understood information on this topic!
These frequent tax code changes are disrupting my long-term investment strategies. Are there ways to structure my investments to be more resilient to potential tax code modifications?
I honestly think America needs a completely restructure of their political system. It is just not working. Trump and Biden being elected out of 300 million people to run the country is evidence for that too.
This is why the US should elect more progressive politicians, who know how to manage budgets and give us (yes, pur country's initials literally spell out that pronoun) much better tax credits in return for better public education and better public healthcare. but since these are nonexistent, my husband and I are being guided to finance our retirement and healthcare through a diversified investment portfolio.
@@williamDonaldson432 How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
Annette Marie Holt is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Most Americans cannot retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?
as most investing-related questions, the answer is, it depends.. my best suggestion is to consider advisory management
Agreed the role of advisors can only be overlooked, but not denied. I remember in early 2020, during covid-outbreak, my portfolio worth around $300k took a slight fall, apparently due to the pandemic crash, at once I consulted an advisor in order to avoid panic-selling. As of today, my account has yielded big fat yields, and leverages on 7-figure, only cos I delegate my excesses right.
this is huge! mind if I look up the consultant that guides you please? only invest in my 401k through my employer for now, but enthused about diversifying my investments for a prosperous financial future
Google Sonya Lee Mitchell and do your own research. She has portfolio management down to a science
I ran an online search on her name and came across her websiite; pretty well educated. thank you for sharing.
I need a way to draw up a plan to set up for retirement while still earning passive income to meet my day to day need and also get charged lesser taxes even while in a higher tax bracket.
Don't put all your eggs in one basket; instead, diversify into different asset classes to mitigate risk. If you lack extensive knowledge, consult a financial advisor.
Accurate asset allocation is crucial with an Experts guidance. I have 850k in equity, 300K cash earning 5.25 interest, 685k in 401k, 250k cash account, 120k in car assets ( paid off cars) Gold and silver bars. age is 48. My advisor helped me realign my portfolio to my risk tolerance and it boomed overtime.
pls how can I reach this expert, I need someone to help me manage my portfolio
*Jennifer Leigh Hickman* is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
To help seniors they need to go back to NOT TAXING social security !!
You do understand they take social security out BEFORE they tax out your federal taxes?
That said I think there should be NO TAXES on social security for people who have worked hard all their lives
@@markdavis1116 But half of your Social Security income should be taxed because it was paid for by the employers contribution, which was not taxed.
the government rather help illegal alliens than help senior citizens.
@@ranjanty The only reason we have a border problem is because my fellow Republicans in Congress, at the direction of Trump, think it’s politically expeditious not to address the problem until he’s reelected president, and unintelligent people like you buy into it. My fellow Republicans in Congress think the American people are so stupid. They’re talking about this openly in Congress. Being stupid is a choice, you don’t have to make that choice. You can use the brains, Almighty, God, gave you, and stop acting stupid.
You can thank that nitwit schemer Ronald Regan. He sold his soul to the billionaires for his slice of the pie. Now his son and legacy is a dam proud atheist and proud of it. Just get all you can while you can and dam everyone else. No ethics at all.
Being taxed twice should be unconstitutional.
Agree, thank Joe Biden who introduced the tax for seniors, before him you kept all the money in your pocket.
@@germanarturo11 Biden promised to make the big sharks 🦈 pay more taxes. But he didn’t reveal that he would go after more little guppies first 🐟🐟🐟🐟… the easy prey!👺💰
@Kenneth Pollard Double taxation with less than half Representation!😠
If our politicians would stop stealing money out of SS we would be fine but some sends up a bill 5000 pages and toward the end of the bill they slip in a page and two lines and it’s to get SS money to do some stupid project in his state. So if we go back threw the years and add interest and we would have so much money in SS that it would never run out of mine and give SS people to get a 500 raise !!
Don't know why Biden was brought up as the fall guy, typical though, but they did say Newt Gingrich was the deciding vote. It was a Bipartisan decision. However, it was President Regan who signed it into law. They say this is NOT tax that is paid in by each employee BUT is the percent that the EMPLOYEER paid in, of which they got to DEDUCT from their business which Uncle Sam claims was a double deduction. One for the employer contribution and one for the employee's percent, which they rec'd at the time SS is taken.
What is a travesty, as was stated, there was NO annual adjustment for inflation factor, as there fortunately is for SS benefits. RIDICULOUS!!!
The biggest problem is we allow people who don't contribute control our money
Who?
You are full of crap.
@@SandfordSmytheBasically the entire government. Do they produce a product of value? Do they earn their money like the rest of us? No - instead they print money on the back end and infinitely tax our nations wealth on the front end.
And to take our $
To Suspend on Wars that we want nothing to do with.. don't worry the IRS will be going away
Social Security is not a benefit…it’s money taken from paychecks!
Your definition.
you get way more money paid out to you by the SSA then you put in, that is unless you die young.The SS payout is more like a deferred annuity.
We are taxes on half of the contribution to Social Security unless you are self employed, the employer pays the other half.
Your dollars were worth a lot more 40 years ago than they are now. And nobody I know invests for 40 years with the goal of getting back exactly what you put into it.
File a new 1040 with nothing but zeros on it.
Another tax no one talks about is how your social security benefit is reduced by medicare premiums based on your MAGI which is a total of taxable income plus non taxable interest. If this MAGI is to high you automatically give up a major part of your social security benefit. 85% of your Social Security benefit gross amount can be taxed when you only really get a net amount after medicare premiums are deducted. This is another tax screw job.
Yes this sucks big time.
If you retire from the NY State Retirement system you get reimbursed for the Medicare premiums because your NY State Health insurance already covers those premiums.
My husband is retiring in July 2023 and we both will benefit from this from his health insurance.
You are absolutely correct. I never thought or knew about this atrocity tax before I removed all my money out of my IRA over a span of 2 years. My medicare part b premium almost doubled. The government is not your friend. fjb
@@thinkertoo2995 Whenever money is withdrawn out an IRA account, taxes are owed on it, but why did your Medicare Part B premium doubled?
@@slimdude2011If your total adjusted income is over a set % it used to be called a "pickle" which kicked in effect early year, then gets readjusted, eitther July 1st I believe (start of most State budgets), or Sept 1st ( beginning of Fed year budget).
I'm sketchy on dates, I retired Sept, 2004 due to lung & back disabilities.
Another way of extortion.
It took 3 guys 49 minutes to answer the question posed in the title. Their answer is contribute/convert to Roth. And, if you have a high deductabe health insurance plan, contribute to an HSA.
Right! Too much gas and banter. Get to the point already.......
Not everyone can contribute to a Roth. (those early retired, have no income, cannot contribute to an IRA)
People receiving SS often are retired, so how are they supposed to put that money into an IRA/Roth?
Thank you!!
Thank you!
How they allowed social security to get taxed is so messed up. Modern slavery
Look, these guys are not really being forthright with you here. Most people do not have thousands of dollars a year to put into a Roth IRA nor into a Health Savings Account. If they did, they wouldn't need social security to begin with. Most people in retirement live on social security and a small retirement income, or maybe work a little here and there, or have a part-time job. You pay social security tax on the adjusted gross income on your tax form. Say you make $18,000 a year in social security income and have $12,000 a year coming in from your post employment retirement fund. That is $30,000 a year total income. On your tax form, you only count 1/2 of your total social security added to your other income sources. In this example, 1/2 of $18,000 is $9,000. Now you add that $9,000 with your $12,000, and your total adjusted gross income is $21,000. That is less than $25,000, plus you have not even counted in your annual deduction and if you are over age 65 you get an additional amount added to the annual deduction. Subtract that, and you will end up somewhere in the neighborhood of $7,000 for your actual TAXABLE income, which is far, far less than $25,000, so you will pay no taxes on any of your social security income. As long as 1/2 of your social security plus any additional funds total less than $25,000, you DO NOT have to pay any tax on your social security. It really is not that difficult to understand, and you really have to make quite a bit of money to pay any tax. And even if you go over the $25,000 threshold, when you add in your standard deduction, you can still have a pretty good income in retirement and still pay no Federal Income Tax. If you work some and don't make a whole lot of money, you might even get a tax refund! You can play around with the numbers based on your own social security to see how much additional income you can acquire before you have to pay a penny on your taxes. If over age 65, use tax form SA, and that gives you a higher deduction to play with.
We have always been slaves most of us are brain washed and just didn't realize. Think about it the world governments have told us a piece of paper is of value when in reality its just paper. Now we are going to labor to earn a worthless piece of paper because they said it is of value. In reality no body or governments should own land as it was meant for everyone to live on growing produce or raising live stock without being taxed. But we the people gave them the power and has allowed it.
You can thank pres Biden for that
One of my adult kids asked me why I had given him a social security number? I said, ‘honey, I never even thought about it…the staff at the hospital gave daddy & me your social security number before you left the hospital.’ ‘Mom, the government owns us once we got them.’
I had never really thought about it that way.
I inherited my folks estate and I’d be taxed for the third time if I withdrew any money early. RIDICULOUS
And yes! I’m taxed on my social security. They worked so damn hard for that money and so did I.
I don't believe in luck I believe in trust and
understanding. I've been trading forex for some
months now and I've made good amount of money
of over $78,100 with her simple strategies of
trading. Meeting with stacy has been one of my best
experience these past few months and am expecting
more withdraws from her
I have incurred so much losses trading on my own..I trade well on demo. But I think the real market is manipulated. Can anyone help me out or at least tell me what I'm doing wrong
trading in the financial market is very volatile and risky to trade that's the reason most investors trade with a professionals
Trading with an expert is the best strategy for newbies and busy investors who have little or no time to monitor trade
Then, how can someone get a professional manager that is trustworthy and legit they are hard to find this days
I think | heard that name before, I stumbled
upon one of her clients testimonies here some
So we are paying taxes on OUR $ TWICE🤬 THEIVES 😡👎🏽
You guys take FOREVER to o get to your points!
Our government no longer cares about seniors. 🤬🤮🤬
You are so right, I mean their salaries begin at $174,000 right off the bat!!!! Imagine what they make when they are still "working"" into their eighties!!! They dont care because they "work" until they die!!!
and don't forget their donations/fund raising, and free gifts!
You’re so right , all they care about is themselves, and the next Election Day ! Our country is in deep trouble, glad I won’t be around in 50 years to see what shape it’s in by then, or have any grandchildren to live through it !
Care about our seniors? Our government doesn’t care about any of us.
Remember the social security tax amendment was signed by Ronald Reagan in 1983.
Didn’t we dump tea into the waters to take a stand on double taxation? The Boston Tea Party
Boston Tea Party was for paying taxes to England without any representation in British Parliament…”No Taxation without representation “ protests …part of what started the US war of Independence from England
NO.....Merchants( dressed as Indians) raided a ship with imported producted (mostly tea) that had a heavy tariff imposed on it that subsided the import company British West Indias) which was basicly a colonial "Trickled Down" levied tax
Its not inflation, its GREED.
You could not have said it any better
This too.
What is hard to understand is this, I started working at very young age and contributed to SS for over 50 years. Never collected unemployment. I have never been unemployed. I turned 65 and decided to file at 67 and 4 months because they said there will be no penalty if I continued working and there was no limit on how much I could earn. They charge me over $600 per month for Medicare. I’m so upset. I know people that never worked in US and they received $$$ plus they get Medicare and medical and they don’t have to pay anything. It so unfair.
I think there are a lot of unknowns here in your post.
1. We have a system in place that is an earn it system. The more money you earn and longer you earn it, the more money you will have to withdrawal.
2. Our system is not based on whether you used unemployment dollars.
3. When retiring it is best to consult an advisor or read the SSI website to understand the financial reality after you stop working and how your age affects what you are entitled to and how much health insurance will cost you because that is different than Social Security money.
Your $600/month Medicare needs an explanation for why. To collect SS and Medicare, you have to have paid into into it. You may be talking about welfare kinds of payments.
Oh no, you were misinformed. A person can still work while receiving their SS benefits, but there is a limit that you can make. If you earned over the limited amount of money from your place of employment, if will definitely impact and reduce the amount of your SS. If you're working full time with 40 hours or more, I suggest that you begin to look for part time employment, so your gross pay is low enough that it will not reduce the amount of your Social Security payments. If you've still needed to work full-time, then you shouldn't had applied for your SS, until you were ready financially to fully retire.
When you turned 65, did you sign up for Medicare? My husband paid his Medicare when he turned 65, but he didn't claim his Social Security until he was 70. If you don't pay you Medicare premiums at 65, then the longer you go without paying, the higher your premiums will be.
Did they charge you $600 a month for Part A Premium or Part B Premium or for both because you either 1) didn't pay in SS and Medicare Taxes long enough from all your W2 or Self Employed Taxes (for over 10 years Part A would be Free and not $500 a month) and 2) Your current Adjusted Gross Income (AJI) is considered High and above ~ $97,000 and if you go to MEDICARE or Social Security website you can learn from them why they charged you high Premiums (based of your 2 Years Ago Tax Return and Income) and you can request an Appeal Form from Social Security which determined your Part A and Part B Premiums if your Income is significantly lower now than 2 years ago. Also, you can verify with Social Security that all of your years of work has been counting with them officially and they have a record of each of your past job and Taxes withholding by your Employers.
So...this is my first time to listen to you guys. I'm about 15 minutes into it and I can tell right now that it's going to take more that a little getting used to! So typical of getting mutual admiration group together! Not only that...ALL THREE OF YOU SEEM TO HAVE BEEN INFLUENCED BY YOUR KIDS AND DEVELOPED A.D.D.!!!
GOOD GRIEF! FINISH A THOUGHT!!!
Gosh! I thought I am the only one with the same sentiment [as yours] about their "style".
I had listening to them once a while ago, and found it exceedingly difficult to follow [them] ... there was just too chatty and too much stretching out a thought that I got lost along the way. As such, I didn't care to listen to more of their shows and soon forgot about them.
Today, YT has "recommended" this video, and based on the title, I decided to check it out. Blah! Now I remember these chatty guys wasting my time! 😤
Or have another cup of coffee...
I agree. One of them should put it in writing.
Exactly. Should be a 10 minute video and 3/4ths of it, just skipping through, is contribute to a ROTH IRA so that the money you receive in retirement has already been taxed. And then the rest is contribute to an HSA. That's 5 minutes tops.
I thought it would be advice on what you can do throughout the current tax year,.. like contribute to an IRA,.. the $7k reduces your AGI, etc... and things like that,.. but no 50 minutes of a circlejerk.
So glad I didn't waste more than 5 minutes on it.
C'Mon, America let's do something about this atrocity!
If it gets done we will have to do it the whole system is so corrupt. They won’t do anything but debate each other
USSA...privatize the gains, socialize the losses.
The Dems are planning to do something about this fact. Vote for Joe Biden Again! Way Past Ignorance is Bliss! Some ignore, others are simply "Dumber than a Mud Fence"!
Quit voting Democrat
WHY? AH! You have to explain your moranic comment, MAGA!@@Midwest10
The reality in my financial world is that taxing even 50% (@12%)of my social security being counted DOES REDUCE MY ANNUAL DISCRETIONARY INCOME BY $1,200+ ! .. Your information doesn't seem to apply to senior citizens who are shocked by the expense of part of their social security income.. that $100 a month may mean nothing to you but for a lot of people that amount of money would pay for their electric bill or their insulin
why did you leave out the Ronald Regan was president the one that signed a bill to tax social security ...but made sure to include Al Gore and Joe Biden ? Are you guys being participen ?
Bi-partisan
It takes forEVER to get real information on this video!!! 😟
1984. When Ronald Reagan was POTUS. He (and the Republican congress) did that. They also took away personal loan and credit card interest deductions. The medical deduction was over 5% of a person's income, increased to 7.5% by them also. And to mention any state sales tax.
All the deductions that helped us work our way from poor to middle class a little faster.
And he also refused to increase the minimum wage entire time he was president.
And I also saw him say on tv that since corporations employ people to provide them income he saw no justification for corporate income tax.
@@georgegriffin1476 I always thought that was why conservatives thought no business tax was a good idea. Thanks for confirming it.
He was hired to be Merica's cowboy in RINO's boots! Paid for by the Great Sheep Alliance!
Can we produce a bill with signatures to stop this double taxation?
biden won't like that!
@@manolocalifas6488 - He's a Senior; I don't think he would block it. I said he would NOT mess with SS. So why do you think he wouldn't like it?
Go to states that don't charge tax!!
Well yes but you must realize that states that do not charge income tax will get you another way.. by much much higher sales taxes or real estate taxes. Ain’t no free lunch, my friend.
This is a FEDERAL tax! State taxes have nothing to do with it.
@@mwoods1052 - Exactly!!
As small as our social security is and they want to tax you on it
every time a dollar is spent it is taxed ?
I just received an inheritance
, part annuity, life ins, IRA and sale of a beach home. I have to start taking out from the annuity by next yr and have it all taken in 10 yrs from when my cousin passed. We also have our own Roth Ira’s. I really never knew the difference between regular vs Roth IRAs. I already am on disability ssa due to Lupus and it’s complications after yrs of paying into FICA. But, because my husband makes over a certain amount, the IRS is taxing 80% of my disability (which was a tax I paid when working). It’s basically double taxation.
Remember, it's only half of your SSDI is taxable, not the full amount. You don't pay taxes on the full amount! You and your husband may want to start filing separately on your tax returns (if applicable) to lower the income, to prevent from paying taxes on your SSDI. You have an option to have monthly payments withheld to the IRS out of your SSDI, so you won't have to owe at the end of the year which may be more convenient.
Thanks for talking about everything except how to avoid paying taxes on SS! Instead we have to listen to a bunch of bitching! 4:28
A Congresswoman from MN. Introduced “the you earned it, you keep it a few years ago to take care of this problem. Where does the bill stand and who is holding this up?
50 minute video to say "Roth and HSA". Waste of time.
Guys! PLEASE post a list of these. We all KNOW you want people to watch/listen, but I got 15 minutes into the video & you still haven’t gotten to a list of how to avoid SS taxes. Not exactly motivation to watch/listen…
"CLICK BAIT"!!
What is the percentage of converting IRA to Roth IRA? Is the percentage different state by state ?
I’m into this vid at 10:30 and nothing useful yet. Got one word for you guys- brevity. Be brief, make your point, move on.
Outta here.
There should be no taxes on any person past age 70 on Social Security. I feel the same in taxes on your home you have lived in for 52 years At age 75 I pay almost $3500 a year out of my SS. I don't have a retirement fund like a IRA ot 401K
Social security is an oxymoronic term. Do farmers usually continue to feed their chickens past egg laying age?
we involuntarily pay into the system, give our $$$ to the government to spend with no interest and then we get taxed on the money when we collect it back. I'd rather keep my money and invest it the way I want, not rely on the government to manage my retirement funds and change laws that prevent me from getting my full contribution.
Agreed100%! If you die before u collect any SS monies, the gov keeps it! Why can't monies I've paid over 40-45 of working be paid to my son?? Legal thivery!
This is such a simple subject that you guys put a lot of energy into making it seem complicated. So you can make money on our backs. Financial planners are basically scammers.
Be nice. Many ppl need their help
Exactly. Should be a 10 minute video and 3/4ths of it, just skipping through, is contribute to a ROTH IRA so that the money you receive in retirement has already been taxed. And hten the rest is contribute to an HSA. That's 5 minutes tops.
OI thought it would be advice on what you can do throughout the current tax year,.. like contribute to an IRA,.. the $7k reduces your AGI, etc... and things like that,.. but no 50 minutes of a circlejerk.
So glad I didn't waste more than 5 minutes on it.
Another 50 minute video, that, based on the topic, should be 1/3 that long…
@@jcgoogle1808 Thanks. You got me to stop after 41 seconds!
Yup. @@jcgoogle1808
Obiden has never served our country in a favorable way.......he has, however, been self serving as he has become a multi-millionaire on a Congressman's salary that most will only dream of.
SHOCKED JOE BRIBEN WOULD SCREW US OVER !
Why are you SHOCKED, HE'S A DAM DEM!!
As I said to another MISINFORMED complainer… Biden does NOT set tax rates. He does NOT go to the Fed and say, oh let’s charge retirees more taxes on their SS. Nor does he tell the corporations and companies how to make maximum profits on their goods. That’s what we’re facing now… obscene record profits on their goods and services so THEIR bank accounts swell to astronomical levels. After all, they have to make sure their CEOs earn their multi-million dollar bonuses each year!
This is money taken from workers , WHY do nonworkers get so much of it ?
Those taxation thresholds on Social Security benefits (starting at 25K) have another name. It's called means testing. So, when politicians tell you they want to start imposing means testing on Social Security, they are lying because it's already happening. They've already done the same thing with Medicare, by progressively raising the Medicare premiums for middle and upper income retirees.
Has any one ever thought that we have already paid taxes during the working years. During the working years you pay taxes on Gross Income. Gross income includes income which includes the Social Security deduced during your working years. Isn't that double taxation???
@@marymendoza1403 Your employer does contribute and you do get interest.
A stop must be put against corruption.
Means testing is not the worst concept, but the way we apply it is. If the 25k were raised to a common poverty standard and the mandatory Part B was not taxed, it would be more fair. And to simplify, cut out the loopholes, the 85% rule, the standard deduction, and reduce the tax itself. Why is that so hard?
@@networkteacher1 I totally disagree with means testing. The middle class is expected to save extravagantly for retirement, but if you do, they want to punish you by taking your base SS benefit, so you are unable to maintain your lifestyle. He11 to the no. I also strongly oppose applying different COLAs based on income, another sneaky form of means testing. Here's how you fix the system. Slightly raise the retirement age over multiple decades based on life expectancy, as was done in the 80's. Slightly raise the payroll tax (both employer and employee) contribution. Apply both the Social Security and Medicare tax to all forms of executive compensation. The wealthy are able to game the system on income taxes, so I have no problem giving them no wiggle room on these mandatory taxes, plus they are the direct beneficiaries of uncontrolled immigration, so they should have to foot the bill.
We ALLOWED this and we must stop it!!!!!!!! No tax on SS,NO TAXS FOR ANYONE ON SS,IFYOUNARE OVER 70 NO MORE TAXS!!!!!!!!!!!!!! Set a limit of 100,000 ADJUSTED yearly!!!!!!!
If the taxes weren’t deducted from your paycheck and we had to pay it quarterly like business owners we would have that revolution you mentioned
Guys this is truly a disgrace and a real problem for us seniors. We are back in the work force so how will this help us the poor. I am a veteran of age 78. And returning back to work force a homeowner a salary of and SSN of approximately $1750.00 a month. Will I be taxed on my SSN of $1450. Monthly? The balance is what I receive from returning to work of 1 year at age 78. Really wants to retire and enjoy my home.Actually retired aNov of 2019 before COVID. Due to food prices and inflation returned to work to supplement my income of SSN .
And you seniors keep voting republicans, they don’t care for the little guy, they are trying to do away with social security, they only help the rich
You can thank biden for inflation
@@salesadmieze9049 thank Reagan for taxing social security
My understanding. You will get taxed on earnings ABOVE the $25k earned. (Your ss is not included in that $25k number. )
Tell me about the Government's G20/ Bail In
I pay tax. But I still work at 67 I pay for social security continued out of my check.
I do too
It's part of "death and taxes..."
Love the show. I have been applying your discussed strategies for the last few years and more recently with a financial advisor. My pet solution which no one has addressed is to force Congress through a loud grassroots movement to apply COLA to the numbers on the Social Security Worksheet for each and every year since 1984. This would raise the miserly 32k to about 80k relieving most of us from the painful taxation of our Social Security. Care to take a leading role in this effort?
Which means they have to raise fica on working folks. It will have to come from somewhere.
Take a look at how much tax free money this company received during the plannedemic. PPP gifts for what?!
@@jimjam36695😅😅😅😅
Sadly, you are not alone in this solution. Yet for years since 1983 Majority in both branches did deliberately Designed How to collect more Taxes from unsuspecting Older Retired who voted for their own destiny in 1980s and the Social Security Act was signed in Stone with now most likely bipartisanship as they are not going to give Older wealthier retired people an easy way out Tax Break, why should they when they get their revenues from those who are least likely to do anything about it, including selecting those who support retirement and older folks to at least be Taxed with Adjusted Tax Brackets on SS and adjusting them retroactively back to 1983 in line with COLA and CPI-U or even Real CPI similarly how they adjust annually Standard Deduction for Inflation. Unfortunately, until there is enough Smart retirees and Smart Younger Relatives of Retirees would push for such Tax changes, more folks on the poorest end of SS would pay more Taxes to raise revenues again (as they already did pay SS and Medicare Taxes of 15% together with their Employers for years of working).
Self serving government, woke spending
People who started work much before year 1986 didn't have much of a chance to make Roth IRA contributions or even common tax bomb IRA contributions.
CORRECT! NOTHING Is Succinct in this giggle llloooonnnnggggggg Interview that could probably take 3-5 minutes to explain
If a person is receiving a monthly amount from a reverse mortgage, does that amount count towards the Social Security allowed amount?
Wow 😳.. I LOVE Your Show .
I have Learned A lot Today .
Thank You Guys 🙏🙏🙏
So it's a good idea to start convert your 401k to Roth IRA when you reach 59 and half until you reach age 67 full retirement age?
I believe you can convert to Roth IRA at any time, I say the soonest the better because you HAVE to pay taxes when you do the conversion. 59 and a half is to start withdrawing the money from your IRA without penalties, but if you convert your IRA to a ROTH IRA at age 40 or 45 for example, you will not be charged the early withdrawal because you are putting it in another retirement instrument, BUT, remember, you will have to pay the taxes that you did not pay when you claimed that deduction, plus all the interest or gains you have made until that moment in time. After this, after you convert to Roth, all your principal and interest you make is tax free.
I think the other consideration is IRMAA. When SS calculates your Medicare part B premium they use the last couple of years of your tax return. If you have done the conversion in those years it will increase your MAGI and make it look higher than it really is and might increase your Medicare part B premium.
@German Gutierrez but I need the tax write off now. Won't most people make less in retirement? Better to pay taxes on it then? .
If you make over limits you pay tax on 85% of you social security. Lower income is the only way to cut tax bill. This video is just a way to get hits and make money. I make 150k+ and I pay on SS, nothing I can do but wright check.
Doesn’t the employer deduct their contribution of 6.2% from their income?
Yes they do---or at least they may and should.
OMG... the Benevolent Thieves in the District of Criminals are not going to TAX 15 cents on every dollar. Lucky me.
Had a 401k in 1984. The other ugly truth about traditional IRAs: if your IRA has been invested in something that would have been taxed at long term capital gains rate instead it's going to be taxed at the higher ordinary income rate when it's withdrawn.
True and it bites. The bright side is that you get to benefit from Uncle Sam's cut, DCA'ed in and compounded over years. I do shorter plays in those accounts to take advantage of the tax deferment and cultivate long-gains and qualified dividends in a brokerage account with o% tax at my income level.
Bernard, it is not a value to speak so quickly that people cannot understand. It is a teenie bopper thing to speak quickly.
I have to leave the program.
Social Security should never be taxed at level of government. Taxing SS is double Taxing.
Your explanations are confusing. Are you talking about more of my retirement being taxed so that I will get less money after all the calculations then I must believe that I am being taxed twice on the same money. Saying something that a portion of my benefits will be taxed twice. To that I respond NO! You keep giving us more money because of inflation and taking that money back through making it taxable. This is criminal. Then you say that the money that is taxed when I earn it and never is never taxed again is taken away a little more each year. So I get a COLA increase when there is inflation. I am retired so I am not getting all of my COLA dollars. It gets taken back by the government. That is not a cost of living allowance. So the government is giving us an allowance to offset inflation but then the government taxes my inflation offset and the government takes all or at least some of our inflation offset and we are not fulling getting the inflation offset and this is all taken back and we are penalized for paying the inflation with less than the money we thought we were going get to help with inflation. "Here is some money so you can offset some of inflation. By the way we will be taking this inflation offset back by taxing the money you are giving us. I am going to pay you all back by voting for those senators and representatives who fight this snake oil logic. I will not vote for any politicians who advocate and vote for this smoke and mirrors. Let find a way to remove obfuscation from your vocabulary because you sound like a used car salesman.
The spending from seniors if not taxed would greatly help the economy. Going out eat and other things to help your local economy.
How the sausage is made as to how to avoid paying tax on your SS is one of the most hidden topics for retirement and retirees. There is no hard and fast rules because every has saved in varying percentages and amounts in different retirement buckets (taxable, IRA/401k etc, Roth). The calculation is this unkown thing for most retirees. But if you understand it, you can know exactly how much to take out or your IRA and pay no taxes along with your SS. There are spreadsheets for this, but is rare to find it.
I will post a website on where to find a spreadsheet for this...if the Wise Money Show says I can post it. You would have to pay for the spreadsheet, but I can tell you it is well worth it for the insights into your taxes. And no, it is not my spreadsheet.
Look up glysophate...welcome to Merica!
In reality, there is no avoidance of not paying taxes on your SS, if your AGI exceeds the limited threshold amount depending on your marital status. Everybody doesn't have to pay taxes on their SS, it depends on the person's income.
@@slimdude2011Yes - the only way to avoid these taxes is to make sure your income is very low, but it is hard getting by at that non-taxable level.
Right now I am avoiding paying any taxes on my Social Security or on CD interest or on IRA withdrawals - simply by limiting my income. All I have to do to make sure I don't go over the limit is to use the formula they mentioned: add 1/2 of my Social Security plus all other income (currently CD interest and IRA withdrawal - not Roth). As long as that total ends up being less than 25K (single filer) my Social Security is not taxable and is then not included on my Fed tax return - and with the standard deduction subtracted from the remainder of my income I owe zero taxes.
But who would want to live at that income level? Eventually when I change from widow's Social Security to my own (planned - because it was and will be significantly higher) and have the forced RMDs on my IRA beginning at 73 my taxable income will increase so that I will end up once again paying Fed taxes, including on part of my Social Security.
Being taxed at all is unconstitutional
The solution is to learn how to not pay ANY taxes to begin with.
Get to the point!
Al Gore was the deciding vote on 93 tax law ? So that's where they got the term
AlGore Rhythm !
I think social security should not be taxed or the levels of the tax should be lowered or people should be allowed to keep more of their income. I can barely make ends meet now on 45 thousand a year with everything is gone up so high. Why am I being taxed so high at my level? It's ridiculous. My draw on my Ira is taxed? What are you talking about
So my Social security is only 1/2 of my income my Ira was converted to a annuity by my investment advisor and both being me up to 45 grand a year. Yet I have to pay 1,700 back in taxes? I'm already tight
Social Security was only meant to replace 50%-60% of your working income. Your own contributions to your IRA or investments while you are working, are supposed to make up the difference.
I've watched a few video's on this very subject. If I'm not mistaken technically you're not paying taxes twice on whatever portion goes over the 50 or 85% rule. Reason being is the Social Security fund is funded by the workers AND the employer. When you contribute your 6.2 percent you are paying taxes on that money, however the 6.2% that your employer pays is NOT taxed. If I'm correct, that means that all of the contributions from the employers are not taxed. The biggest issue with all of this is the fact that those amounts where you start getting taxed on your SS benefits haven't changed since it's inception in 1983. Totally ridiculous. It's the dirty little secret that no ones paying attention to.
Are we paying the taxes on employers portion?
@@jeanetteorosco8153 I guess you can look at it that way if you want to. I think SSA wants "someone" to pay the taxes on the employers contribution. They're going to get their money one way or another.
Who can live on $25,000 per year? Rent is at all time high. Food - Utilities- Meds?? Transportation?
SS is a joke! The government has borrowed ( stollen) from the fund- never replacing it- so then the Gov comes up with another way to steal from you again- while this Gov is giving aid to another country for a war we have no business in?
Ppl here are struggling- especially the old and disabled. Now they want to tax our SS? Someone
@@jeanetteorosco8153 Employers are allowed to deduct their portion as a business expense so the half that's taxed is your half.
No, it is also a tax, as the employer is taxed. Either way you look at it, it is double taxation.
We are taxed, income,sales, gas, road, at 65 steal money you were already taxed on once.
Blame Reagan not Biden or Gore or Santa Claus.
It was 88 bipartisan votes. Why those other senators aren't mentioned? Hmmm Back in 1983, the trust fund for retirement benefits was running out of money. That was going.
We pay for other people's social security, and, we pay for other people's education (teacher's salaries, school supplies, new school buildings and the maintenance of those buildings, and so on ) and other people's streets and roads, and a multitude of people's other stuff.
WHO IS ,USA INC . IT IS A BRITISH CORPORATION ,,,
OWNER'S OF , FEDERAL RESERVE AND IRS , THAT IS HEADQUARTERED IN PORTO RICO ...
We do not need to tax social security. What is needed is for congress to remove from the tax code all deductions except for the number of dependents which is needed for the poor and meddle class.
The tax is only for SS purposes
A tax free state would be great! Not our case no matter what they tax us every turn . Stores electric gas food local an land taxes . School tax, insurance, everything . Ya know there are people who have died still getting bills . There is no escape , no matter what you do . And those bills are still taxed . So I guess it's a live, pay, and then still be taxed with all your left over bills after death . It's a death trap . . Taxes no matter what ...🤔
I got under 10,000 in 2022. AndI will get taxed on that?
NO
What about 23??
The marginal rate at Fed plus State is above the rate any IRA can sustain. IRA savers just take risk for the government.
Still waiting. Tell me how to avoid paying tax on my social security.
Did you not know this is "CLICK" bait???
I really should have paid attention to math.
Social Security income should NOT be taxed. That money was taxed already when gov. took it from us. That's our money from already taxed income. We shouldn't have to pay two taxes on our money. So...who's on first? :)
Actually, your SS deductions are not taxed when they are paid.
ignoring 1/2 of SS and medicare was paid by someone other than employee and never taxed
Well, this didn't help me at all. I don't have an IRA (I don't work and I'm married) and I'm not eligible for an HSA but I'm eligible to take my Social Security. It appears that without those two things, I will have to pay the taxes on my social security. Disappointing.
It's better to have income than not.
No one should be controlled over their income. What they can and cannot do, nor have income taken from them. I heard it use to be that you could start new IRA accounts with saved income or from dividends earned from investments, but that now it is not allowed unless you are employed. Problem needs resolve.
Police state in all the forms! Too many cowards and sheeple following politicians and political parties rather than Jesus! Rise up and join the fight against principalities and powers of this world. Don't be mislead into thinking we are the good guys just to keep getting richer. The eye of the needle is a tough gate to enter.
Good for you for saving money! Interest income is usually taxable, but some is not. Municipal bonds, for example, are not taxable at the federal level, but they might be at your state/local level. Distributions from certain life insurance annuities are also not taxable. If you invest your extra funds in stocks that don't pay dividends or in gold, silver or artwork, the increase will only be taxable when you sell. It might be worth doing some more research and/or consulting a financial planner to learn more about your options.
Fallacious argument. Social Security is not a retirement fund you pay into. Your payments go towards paying people who are currently drawing Social Security. When you elect to take your social security, it is not "your money" coming back to you, it is money (theoretically) that is being paid into the system by current workers.
Insurance pool
@@SandfordSmythe Where in the HELL did my money taken out of my check go to weekly.??.TAXES was MY MONEY I MADE!!
This could have been a 6 minute video.
And if we set a number that you do not pay tax’s on our homes and no tax on SS the number is how much money you have coming in !
You need one mike and one dude talking to give us 5 minutes of info.
Not 50+ minutes.
C’mon man!
In NY State we can take out $20,000 per year tax exempt on private pensions, 401k , 457b and other retirement accounts. The withdrawals have to be spaced out i think in the year like $10,000 in Jan and $10k in December the money does have to be reported on your taxes but it is exempt from any taxes.
we already pay taxes on SS. you mean paying twice don't you. ?
50% Nor 85% Should NOT BE TAXED!!!
that 's not true in Kansas you pay on your gross federal income with includes SS
I have never found software that takes into account the lost future potential value of the tax that is paid on Roth contributions or conversions.
I get about 2400 Soc Sec per month. Had to draw out $ for major house appliances and ended up having to pay 3500 in Fed taxes for 2022. Could I have avoided this? Dwindling annuity now about $50,000, had to draw out MORE to pay taxes..vicious cycle.
I was told that if my SS was under $25 s year that so didn't have to pay taxes. Is that true. I haven't filed taxes since the 80s. Should I be worried? I started out on SS disability in my 30s. I am now almost 39.
Correction. $25,000
Carla Bircher - I never used to file either because I was under the limit for personal income. My late Dad asked me if I was filing. I told him no. He said, ‘honey! File! You’ll get money back.’
Doesn’t it come out even no matter which way you stir the money?
And now that I also have an inherited estate, I feel screwed!
During covid there where checks based on filing..and if you where head of household.
@@carlabircher4370, If you get a raise on your SS, anything over $25000.00 you will pay taxes!, Americans are screwed
Why don't people understand how CPAs lobby for tax complexity? Tax consultants are a big lobby working to create this huge financial system and driving government corruption.
Tax complexity is often added to incentivize certain behavior, too. For example, the tax credits for installing solar.
6.2 fica is only if an employee. 12.4% if self employed and the same applies to medicare
My HSA was hacked on $0.11 fake purchase, plus $0.40 fake purchase. They took $460.00 total. Since Dec '23. What pills sell for 11 cents?
Gentlemen, listen to Yourself! You make the problem of 85% by explaining taxes poorly and scare people with your technique. Find a better way. Explain it better, it is you, not the listener.
I would have liked some commentary for other than Corporate America wage slaves. Business owners that operate using a C-corp. can control their salaries or distributions, for example, or can access funds via non-taxable loans from the company, thus paying zero taxes on SS benefits.
Keep the public masses ignorant...they will never know they were citizens!
Viva la corporate merica!
If you are going to broadcast, you need visuals. A graph, chart, etc would make this more understandable for those of us that are visual learners.
We have all IRA's converted or still contributing as ROTH. BUT if one spouse is still working and income is over 32K, the spouse collecting SS benefits will be taxed accordingly. Can you speak to self-employed/Solo ROTH 401k--does this differ from a ROTH or 401k when figuring income sources for social security benefits? Both my husband and myself have had an HSA for years. He spends his down, I've saved mine, untouched to use as a retirement account. I've talked to him numerous times about this strategy and he has a hard time wrapping his head around the idea. Because of the information you provided in this video I have one more nugget to present to him--tax savings in retirement when collecting SS benefits. Thanks so much for valuable and easily understood information on this topic!
take a mortgage on investment real estate or a loan on your stocks and live off them tax free.
LOL already have tax me for 30 years as an over-the-road driver and I doubled paying my taxes as they was deducting taxes from my check