Social Security Disability

Which state sends most taxes to DC? Hint: It’s not a state
Social Security Disability

Which state sends most taxes to DC? Hint: It’s not a state

WASHINGTON (AP) — As Tax Day approaches, show some love for the good people who live in the nation’s capital.
Washington, that swampy den of iniquity that politicians love to scorn, sends the most tax dollars per person to the U.S. government.
Last year, the District of Columbia paid Uncle Sam $37,000 per person in federal income, payroll and estate taxes. “The reason the District pays so much in taxes is that there are a lot of high-income people there.”
The IRS says millions of taxpayers have yet to file their returns.
The nation’s capital gets a good return on its tax investment.
For every dollar the District sends to the federal government, it gets back almost $4, according to a 2015 study by the New York state comptroller.
The closest state is Mississippi, which gets back $2.57 in federal spending for every dollar it sends to Washington.
So why do so many of these states that benefit from the federal government produce conservative politicians who complain that the government is too big?
Most states are winners when it comes to getting more money from the federal government than they pay in taxes.

Ask Larry: ​​Can My Wife Switch To Her Spousal Benefit?
Social Security Disability

Ask Larry: ​​Can My Wife Switch To Her Spousal Benefit?

Ask Larry: ​​Can My Wife Switch To Her Spousal Benefit?.
Hi Larry, my wife, who is two years older than me, filed for her retirement benefit at 62 when I was 60.
I will file for my retirement benefit when I reach my full retirement age (FRA) of 66 in early 2019.
When I file at my FRA, can my wife switch from her retirement benefit to her spousal benefit, which will entitle her to 50% of my monthly benefit?
If you were born on or before 1/1/1954, you could file for and receive your spousal benefit between your FRA and 70 when you’d file for your increased retirement benefit.
When will I be able to file for divorced spousal benefits on my ex’s record without it affecting the amount I will receive when I turn 66 and file for my own full retirement benefits?
Best, Larry Can I Suspend My Disability Benefit?
Hi Larry, I am 58, divorced (married 25 years), and have received a Social Security disability benefit since 2007.
However, at your full retirement age (FRA), your disability benefit will automatically convert to a standard retirement benefit, which you can then suspend until 70 to earn delayed retirement credits (DRCs) of 8% per year, calculated and applied monthly.
If your divorced spousal benefit is larger than your disability benefit, which is also what your retirement benefit will equal, it may be best to just collect your divorced spousal benefit beginning at your FRA.​ Our tool at can sort all this out and suggest your best strategy with respect to suspending.

Taxation Of Social Security And SSDI Payments
Social Security Disability

Taxation Of Social Security And SSDI Payments

Depending on the amount of alternate income that you have in retirement and your filing status, you could owe taxes on up to 85% of your Social Security benefits.
This form tells you the total amount of your benefits but does not tell you if any of your benefits are taxable, or at what percentage.
However, you can get a reasonable estimate by combining half of your Social Security benefits with all other income (including tax-exempt interest) and comparing it to the base amounts that are excluded from tax.
Anything over the base amount may be taxable.
One-half of that total serves as your income for these calculations.
This is the total of most of the income boxes in lines 7-21 of your Form 1040 with the exception of non-taxable portions of pensions and annuities and tax-exempt interest (lines 8b, 15a, and 16a, respectively).
None of your benefits are taxable if the result is smaller than the base value for your filing status.
It will direct you to worksheets in other publications for special situations such as having combined IRA’s and a work-related retirement plan.
If you determine that you do have to pay taxes on your benefits, you can have federal taxes withheld from your benefit package or make periodic estimated payments of your tax to the IRS.
To avoid paying taxes pre-emptively on your Social Security benefits, run a series of calculations to find out the maximum income outside of Social Security that you can bring in without triggering the taxes.

Wall Street’s ‘Solution’ To Every Problem: Cut Social Security
Social Security Disability

Wall Street’s ‘Solution’ To Every Problem: Cut Social Security

Wall Street’s ‘Solution’ To Every Problem: Cut Social Security.
Indeed, the problem for which cutting Social Security is their solution sometimes actually contradicts another problem for which cutting Social Security is their solution.
Until recently, those determined to cut Social Security argued that everyone is living longer, so we must cut Social Security.
Now that supporters of Social Security have pointed out that not everyone is living longer, those determined to cut Social Security are starting to say: okay, not everyone is living longer, so we must cut Social Security.
Revealingly, the authors examine the impact of various cuts to Social Security on lifetime benefits, but not the impact of requiring the wealthy to pay more for their earned benefits.
Those who have seen their incomes and wealth skyrocket should be required to pay more for this increased spending, which will benefit us all.
A tipoff that the focus on Social Security and disparities in longevity is simply one more solution in search of a problem is that the analyses willfully refuse to see Social Security as the wage insurance that it is.
Those who turned age 62 last year and earned the maximum wage amount under Social Security — $118,500 in 2015 — received benefits that replaced 21.6 percent of those maximum wages.
Cutting its modest benefits is not the solution.
Indeed, the so-called solution is not even responsive to the problem.

Schumer Trolls Trump Tax Plan: You’re Doing It Wrong
Social Security Disability

Schumer Trolls Trump Tax Plan: You’re Doing It Wrong

Schumer Trolls Trump Tax Plan: You’re Doing It Wrong.
WASHINGTON ― Senate Minority Leader Chuck Schumer (D-N.Y.) had a tart message for President Donald Trump on his tax reform proposal Thursday: You’re doing it wrong.
Schumer pulled out the old internet meme after Treasury Secretary Steve Mnuchin said he couldn’t guarantee that the tax cuts would benefit the middle class.
The one-page outline of the plan released Tuesday would definitely represent a large cut for the wealthiest Americans.
“If on one piece of paper you can guarantee that the wealthy and special interests will pay less, but can’t guarantee that for the middle class, you’re doing it all wrong,” Schumer said.
“What President Trump unveiled yesterday is not the Trump tax plan, it is the plan to lower President Trump’s taxes, the taxes of his Cabinet and people as wealthy as they are,” Schumer said.
Republicans have hailed the president’s outline as the right path to reform the nation’s complicated tax laws, arguing that increased economic activity will offset any revenue lost due to the cuts.
But based on Trump’s campaign platform, the cuts could add some $8 trillion to the deficit, according to a New York Times tally.
Schumer suspected ill intent lies behind such a proposal from a party that complains about deficits when it comes to things like disaster relief and helping 9/11 responders, but not when it comes to giving the wealthy tax breaks.
“You can be sure a few years down the road that our Republican colleagues on the hard right will come to us and say the deficit is so big, we have to reduce Medicare and Social Security.” The Senate minority leader described Trump’s tax ideas as a “non-starter” for Democrats.

Social Security paid prisoners $1M in disability
Social Security Disability

Social Security paid prisoners $1M in disability

Social Security paid prisoners $1M in disability.
The IG recommended that SSA look into recouping payments from the prisoners who received the payment inappropriately.
He told me that he had been receiving the checks monthly for ALL three years and was “entitled” to it.
That is the state of government today especially the Obama admin.
Honest mistakes can and do happen…You just can’t fix stupid. “Prisoner tax fraud has ballooned in recent years.
In 2010, more than 91,000 inmate returns claimed $758 million in fraudulent refunds, a new audit from the Treasury Inspector General for Tax Administration finds.
These phones are not free our tax dollars are paying for them.
Maybe I should move to Texas and run THEIR prison system.
It will probably cost the taxpayers more to recoup the money from the felons.

Why You Should Try to Tape Conversations With Social Security
Social Security Disability

Why You Should Try to Tape Conversations With Social Security

It has 12 different benefits, but is chock full of hidden secrets and gotchas that make collecting what you’re owed a user’s nightmare.
To her great surprise, she wrote a best selling children’s book in 1996 and started receiving royalty checks.
The ‘File and Suspend’ Snafus My most recent horrible Social Security stories come from the Social Security Administration telling its staffers (via email and a web posting) incorrect/incomplete information about who was grandfathered under the recent law regarding the ability to “file and suspend” benefits.
The wife filed for her retirement benefit and immediately suspended it.
They told her that her then 63-year old husband had to be 66 by April 29, 2016 to be able, when he turned 66, to collect just a spousal benefit for four years while letting his own retirement benefit grow to its highest value at age 70.
Social Security’s mistake has cost this couple about $60,000.
In May, the husband learns about the deadline, goes back to Social Security and is told, “sorry, you’re too late.” This couple just lost about $45,000 — again all due to Social Security’s mistakes.
Both of these couples can spend years appealing Social Security’s mistakes.
Whether you call Social Security on the phone or go to an office, I really think it pays to tape the conversation, if you can.
I wish I had taped the call.

Senate nixes Obama-era gun rule
Social Security Disability

Senate nixes Obama-era gun rule

Senate nixes Obama-era gun rule.
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The Senate nixed an Obama-era rule that could block some people receiving Social Security disability benefits from being able to buy a gun.
Senators voted 57-43 to strike down a regulation that requires the Social Security Administration to report people who receive disability benefits and have a mental health condition to the FBI’s background check system. “The [Congressional Review Act] we have before us today will make it harder for the federal government to do what we have told them to do for decades, which is to put dangerous people and people who are seriously mentally ill on the list of people who are prohibited from buying a gun,” he said from the Senate floor.
The move allows them to bypass the Senate’s higher 60-vote threshold, which would require the support of Democrats, and undo a rule with a simple majority in both the House and Senate. “The reality is that, like us, they believe the regulation is simply bad policy, places an unfair stigma on those with disabilities and violates their constitutional rights which is why a wide array of groups oppose it,” he said from the Senate floor.
The National Rifle Association also opposed the rule.
The group said the determination of who is mentally ill should be left to courts.
The rule was set to go into effect in December.

Q&A: Taking advantage of Social Security benefits means some wait, others don’t
Social Security Disability

Q&A: Taking advantage of Social Security benefits means some wait, others don’t

Q&A: Taking advantage of Social Security benefits means some wait, others don’t.
I have not yet filed for Social Security benefits.
Is there an advantage for me to file after she files?
“Benefits will increase by 8% per year until maximum benefits are paid if a person takes Social Security at age 70.” Similar to your wife, unless she needs the money or has a shortened life expectancy the longer she waits to take benefits the more she will receive, says Stenken.
“Taking at 62 will result in a permanent reduction of her benefits by 25%,” he says.
So, for instance, if you wait to claim at age 70, her survivor’s benefit would be that amount.
Some of those tools were reviewed in this report, A Comparison of Free Online Tools for Individuals Deciding When to Claim Social Security Benefits, include: Q: Can I claim spousal benefits when I’m 66 years old this coming March to receive 50% of my wife’s benefit and, if I can, would I be compromising my future benefits in any way which I plan to claim when I’m 70?
– Robert Hendler, New York A: Yes, it will be possible for you to receive a spousal benefit equal to 50% of your wife’s full retirement age (FRA) benefit while also continuing to accumulate delayed retirement credits on your own account up until 70 when you file for benefits on your own record, says Matthew Allen, the co-founder and co-CEO of Social Security Advisors.
You will want to file a restricted application for spousal benefits only effective as of your 66th birthday in March, says Allen.
“You can file a restricted application for spousal benefits by visiting a Social Security office, over the phone with Social Security, online via the Social Security Administration website, or by using a professional filing service,” he says.

4 Tax Filing Tips For People 65 And Older
Social Security Disability

4 Tax Filing Tips For People 65 And Older

4 Tax Filing Tips For People 65 And Older.
By Alissa Sauer, Next Avenue Contributor Tax filing time is quickly approaching (April 18, this year), so it’s a good time to offer a reminder about tax filing rules, tax deductions and tax credits specifically for people 65 and older.
1. Who Needs to File Every unmarried person over 65 who had a gross income of at least $11,900 in 2016 is required to file an income tax return.
Social Security benefits are not included in that gross income figure unless: you were either married filing separately and lived with your spouse at any time during 2016 or half of your net Social Security benefits plus other gross income and any tax-exempt interest exceeded $25,000 ($32,000 if you were married and filing jointly).
If you met either of those two exceptions, the taxable portion of your Social Security benefits is included in your gross income for determining whether you need to file a return.
If you lived only on Social Security in 2016, you won’t need to file a federal income tax return.
The Elderly or Disabled Tax Credit Some taxpayers over age 65 qualify for the Tax Credit for the Elderly or Disabled, which ranges between $3,750 and $7,500.
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If you were married and only one of you was 65 or older in 2016, you can still use the 7.5% rule.
Required Minimum Distributions from IRAs If you are 70 ½ or older and have a traditional IRA, you must take Required Minimum Distributions (RMD) and report them on your tax return.