Comments on: Social Security Taxes in 2008 http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/ personal finance tips, tricks, and commentary Sat, 21 Nov 2009 17:19:36 -0500 http://wordpress.org/?v=abc hourly 1 By: Douglas Du Bois http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/comment-page-1/#comment-135883 Douglas Du Bois Sun, 25 Oct 2009 20:44:32 +0000 http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/#comment-135883 I sure would like to have a answer to my questions. I sure would like to have a answer to my questions.

]]> By: Douglas Du Bois http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/comment-page-1/#comment-135871 Douglas Du Bois Fri, 23 Oct 2009 21:12:06 +0000 http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/#comment-135871 I want to know how much did Social Security payed out in 2008. I also want to know how much the Treasury Department owes Social Security. Douglas Du Bois 665 Lemoine Cut Off RD Colfax, La. 71417 email dud102@hughes.net I want to know how much did Social Security payed out in 2008.
I also want to know how much the Treasury Department owes Social Security.

Douglas Du Bois
665 Lemoine Cut Off RD
Colfax, La. 71417
email dud102@hughes.net

]]> By: Diane http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/comment-page-1/#comment-126050 Diane Thu, 16 Oct 2008 04:18:16 +0000 http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/#comment-126050 I came here looking for information on the fantasy that the SS tax is for our retirement security. They don't want to let us control our own investments because we are too stupid to be trusted not to lose it. But I have heard figures that I am trying to confirm: like contributions in a private fund VS SS brings in $2,500/mo VS $500/mo. And that they (our representatives; I call them masters) are "borrowing" (I call it stealing) out of the SS fund every month, like it is their piggy bank. Hard to earn interest on an IOU. But what do they care? Legislators retire on full income for life w/staff. I came here looking for information on the fantasy that the SS tax is for our retirement security. They don’t want to let us control our own investments because we are too stupid to be trusted not to lose it. But I have heard figures that I am trying to confirm: like contributions in a private fund VS SS brings in $2,500/mo VS $500/mo. And that they (our representatives; I call them masters) are “borrowing” (I call it stealing) out of the SS fund every month, like it is their piggy bank. Hard to earn interest on an IOU. But what do they care? Legislators retire on full income for life w/staff.

]]> By: Bryan Decelles http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/comment-page-1/#comment-117788 Bryan Decelles Sat, 07 Jun 2008 00:29:03 +0000 http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/#comment-117788 I understand that if you as an employee that worked for two companies and make more than the FICA limit you can claim a refund. Does this apply for the two companies as well? I have worked for 6 months as a self employed and will work for 6 months as and W2 employee for the same company and want to get a refund for the employee and employer side of the FICA after I exceed the limit. I understand that if you as an employee that worked for two companies and make more than the FICA limit you can claim a refund. Does this apply for the two companies as well?

I have worked for 6 months as a self employed and will work for 6 months as and W2 employee for the same company and want to get a refund for the employee and employer side of the FICA after I exceed the limit.

]]> By: Crandall http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/comment-page-1/#comment-114036 Crandall Fri, 28 Dec 2007 23:00:26 +0000 http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/#comment-114036 [" your employer pays an equal amount on your behalf. But if you’re self-employed, you “get to” pay both shares yourself..."] You pay the FULL 15.3% FICA tax... whether your a normal employee or self-employed. It's a cruel deception for the government to say otherwise -- but most Americans... and especially the American media believe that falsehood completely. And it's a very regressive tax, hitting low income wotkers the worst. Many, if not most American workers pay more in these payroll taxes than they pay in income taxes. [" your employer pays an equal amount on your behalf. But if you’re self-employed, you “get to” pay both shares yourself..."]

You pay the FULL 15.3% FICA tax… whether your a normal employee or self-employed.

It’s a cruel deception for the government to say otherwise — but most Americans… and
especially the American media believe that falsehood completely.

And it’s a very regressive tax, hitting low income wotkers the worst. Many, if not most American workers pay more in these payroll taxes
than they pay in income taxes.

]]> By: Daniel http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/comment-page-1/#comment-114030 Daniel Fri, 28 Dec 2007 11:44:31 +0000 http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/#comment-114030 @nickel: well, that really stinks. I keep chasing that cap, always only a few thousand behind it. With my wife's income this past year, we paid well over the limit, but since the limit is per person, we still have to pay 15.3% each on our full incomes. :( @nickel: well, that really stinks. I keep chasing that cap, always only a few thousand behind it. With my wife’s income this past year, we paid well over the limit, but since the limit is per person, we still have to pay 15.3% each on our full incomes. :(

]]> By: Michael B. Rubin http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/comment-page-1/#comment-114026 Michael B. Rubin Fri, 28 Dec 2007 00:40:43 +0000 http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/#comment-114026 More (not so) fun facts: the employee-paid portion of your Social Security and Medicare taxes are also not deductible from your regular income taxes. What does that mean? It means you pay tax on a tax. If your gross pay is $100 and Social Security takes $6.20, you pay your federal income tax (and state income tax too, if applicable) based on the full $100. This means you're paying income tax on $6.20 of money you never got in the first place (because it was withheld for Social Security). Then, of course, many of us will get to pay income tax on that Social Security benefit money when it comes back to us during retirement. Almost sounds like triple taxation, doesn't it? Scary. More (not so) fun facts: the employee-paid portion of your Social Security and Medicare taxes are also not deductible from your regular income taxes.

What does that mean?

It means you pay tax on a tax. If your gross pay is $100 and Social Security takes $6.20, you pay your federal income tax (and state income tax too, if applicable) based on the full $100. This means you’re paying income tax on $6.20 of money you never got in the first place (because it was withheld for Social Security).

Then, of course, many of us will get to pay income tax on that Social Security benefit money when it comes back to us during retirement. Almost sounds like triple taxation, doesn’t it?

Scary.

]]> By: Foobarista http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/comment-page-1/#comment-114021 Foobarista Thu, 27 Dec 2007 20:02:18 +0000 http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/#comment-114021 Personally, I think all taxes paid as part of your payroll should be on your paycheck. The notion that SS has some sort of "employer contribution" is an accounting fiction - if you didn't have the job, the employer wouldn't pay it, so it's part of your compensation package. Part of being an informed citizen is knowing how much you pay in taxes. But it's in the interest of politicians to make it seem that it's those evil rich guys, not you, paying taxes. Personally, I think all taxes paid as part of your payroll should be on your paycheck. The notion that SS has some sort of “employer contribution” is an accounting fiction – if you didn’t have the job, the employer wouldn’t pay it, so it’s part of your compensation package.

Part of being an informed citizen is knowing how much you pay in taxes. But it’s in the interest of politicians to make it seem that it’s those evil rich guys, not you, paying taxes.

]]> By: SecondCor521 http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/comment-page-1/#comment-114019 SecondCor521 Thu, 27 Dec 2007 19:18:41 +0000 http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/#comment-114019 A part of your article could be confusing: where you talk about adding up the amounts in box 4 of one's W-2's. For most ordinary folks who will be preparing their 2007 income taxes in a few months, they should use the appropriate Social Security limit for 2007, not 2008 as your article implies. For 2007, the amount is $6,045 ($97,500 * 6.2%). 2Cor521 A part of your article could be confusing: where you talk about adding up the amounts in box 4 of one’s W-2’s.

For most ordinary folks who will be preparing their 2007 income taxes in a few months, they should use the appropriate Social Security limit for 2007, not 2008 as your article implies. For 2007, the amount is $6,045 ($97,500 * 6.2%).

2Cor521

]]> By: geo http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/comment-page-1/#comment-114017 geo Thu, 27 Dec 2007 16:53:13 +0000 http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/#comment-114017 One more slightly-positive detail: if self-employed, you deduct half of your 15.3% social security tax from your gross income on your return. (This represents the 7.65% portion you normally get from your employer, that is not considered income.) It's off the top, not an itemized deduction. Just follow the instructions carefully on your 1040 and you'll get this. One more slightly-positive detail: if self-employed, you deduct half of your 15.3% social security tax from your gross income on your return. (This represents the 7.65% portion you normally get from your employer, that is not considered income.) It’s off the top, not an itemized deduction.

Just follow the instructions carefully on your 1040 and you’ll get this.

]]> By: nickel http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/comment-page-1/#comment-114016 nickel Thu, 27 Dec 2007 16:43:11 +0000 http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/#comment-114016 ro: It's not a family limit per se. This limit is per person earning Social Security benefits. ro: It’s not a family limit per se. This limit is per person earning Social Security benefits.

]]> By: ro http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/comment-page-1/#comment-114015 ro Thu, 27 Dec 2007 15:58:18 +0000 http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/#comment-114015 the limit is for individual I suppose? For a family you multiply it by 2. the limit is for individual I suppose? For a family you multiply it by 2.

]]> By: Honest Dollar http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/comment-page-1/#comment-114014 Honest Dollar Thu, 27 Dec 2007 15:23:30 +0000 http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/#comment-114014 To add to your point about working more than one job in a year: Not only does FICA (Social Security, Medicare) taxes "reset" when you move to a new job, so you may end up overpaying, but you should be careful if you've transferred within a large corporation as well. I work for a large global firm with multiple legal entities for different countries and different businesses, and when people transfer across legal entities, FICA resets as if they had changed jobs. To add to your point about working more than one job in a year: Not only does FICA (Social Security, Medicare) taxes “reset” when you move to a new job, so you may end up overpaying, but you should be careful if you’ve transferred within a large corporation as well. I work for a large global firm with multiple legal entities for different countries and different businesses, and when people transfer across legal entities, FICA resets as if they had changed jobs.

]]> By: jim http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/comment-page-1/#comment-114012 jim Thu, 27 Dec 2007 14:52:33 +0000 http://www.fivecentnickel.com/2007/12/27/social-security-taxes-in-2008/#comment-114012 It's funny how they forget to index things like AMT to inflation but don't forget to index things like this, things that would reduce your taxes if they forgot. :) It’s funny how they forget to index things like AMT to inflation but don’t forget to index things like this, things that would reduce your taxes if they forgot. :)

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