Tag: Adjusted gross income

You’re Probably Taking Social Security for Granted
Social Security Disability

You’re Probably Taking Social Security for Granted

Just 12 years later, in 2034, the estimated $3 trillion in asset reserves held by the Trust will be completely exhausted.
You’re dead wrong about Social Security not being there when you retire The result is that quite a few working Americans have all but given up on the idea of Social Security being there for them when they retire.
In 2016, the taxation of benefits generated $32.8 billion of the $957.5 billion collected by the program.
This tax on working wages was responsible for over 87% of the $957.5 billion collected in 2016.
Essentially, as long as the American public keeps working, and Congress doesn’t change the mechanism by which Social Security is funded, payroll taxes will ensure that some income is being parsed out to beneficiaries when they’re eligible for a retirement benefit.
Social Security does more than you realize Many folks also think of Social Security purely in terms of retirement income.
As of November 2017, a little more than 10.4 million people were receiving a monthly payout averaging $1,039 as a result of Social Security’s Disability Insurance program.
Maybe you’re leaning on Social Security too much And then there are those at the opposite end of the spectrum who don’t believe Social Security is insolvent, but are leaning far too heavily on a program that’s simply not designed to be a primary source of income.
According to the Social Security Administration, retirement benefits are expected to replace about 40% of the average workers’ wages.
Yet, the data shows that 62% of retired workers lean on the program for at least half of their monthly income, with 34% expecting it to provide 90% or more.

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.