Alimony or separate maintenance payments are payments made to a spouse under a divorce or separation instrument, including a divorce decree, separate maintenance decree, or a written separation agreement. These payments are considered for federal tax purposes and are part of one’s income. If the amount of alimony received exceeds the SSDI or SSI benefits, the ex-wife may not be able to collect Social Security payments. If alimony becomes an issue after the wife is already receiving SSI or SSDI benefits, the ex-spouse can receive both Social Security benefits and alimony at the same time.
Rhode Island residents should know that their ex-spouses can receive both Social Security benefits and alimony at the same time. Alimony from a divorce or separation agreement cannot be deducted by the person paying it after 2019. However, you can deduct the amount of alimony payments even if you don’t itemize deductions on your income tax return. Social Security retirement benefits impact alimony when paying and receiving alimony. If you are either a supporting or supported spouse, then the amount of Social Security is taxable.
Alimony payments received by the former spouse are taxable and must be included in your income. The payor can’t deduct child support, and payments are tax-free. When calculating your gross income to see whether Alimony from a divorce or separation agreement cannot be deducted by the person paying it after 2019, the Department of the Treasury (Treasury) can also withhold Social Security benefits to collect delinquent non-tax debts owed to other federal entities.
📹 How Social Security is Taxed Made Easy!
Calculating taxes on Social Security follows a 3 step process using simple inputs. Once you know the inputs, knowing how Social …
Are Alimony Payments Tax Deductible In A Divorce?
Until January 1, 2019, the IRS permitted paying spouses to deduct alimony payments, while recipients were required to report these amounts as taxable income. Alimony, or spousal support, consists of monetary payments made by one spouse to another following separation or divorce. Agreements made prior to 2019 generally allowed for deductibility by the payer. However, if spouses are still living together, payments are not tax-deductible.
Transformations enacted by the Tax Cuts and Jobs Act of 2017, applicable to divorce agreements finalized or modified after December 31, 2018, state that alimony payments are no longer tax-deductible for payers and not considered taxable income for recipients.
For agreements executed before 2019, alimony remains taxable to the recipient and deductible for the payer. To qualify for the deduction, cash payments must be detailed within the divorce agreement, inclusive of the recipient's Social Security number. With the new tax laws, any alimony made under agreements dated January 1, 2019, or later does not provide any tax advantage for the payer, nor is it reported as income by the recipient. Therefore, only those agreements finalized before 2019 maintain the ability to deduct alimony payments for tax considerations.
Is Money From A Divorce Settlement Taxable?
In California, divorce settlements are generally not taxable, but specific elements may carry different tax implications. It's crucial to grasp the factors influencing the taxation of divorce settlements for optimal financial decisions. Although property transfers between spouses during a divorce settlement aren't typically taxable events, the IRS may require tax documentation like a 1099-MISC, clarifying tax liabilities. Notably, following divorce finalization after January 1, 2019, you cannot use settlement funds for IRA contributions without having paid taxes first.
Alimony payments can be deductible, while the characterization of payments under a divorce agreement can determine tax status. Lump-sum payments, common in divorce settlements, are generally non-taxable, but tax implications may vary based on specifics. While divorce itself doesn’t incur taxes, some financial aspects can have significant tax consequences, necessitating guidance from a tax advisor. Additionally, while most property transfers in divorce are tax-free, potential Capital Gains Tax may apply to post-divorce asset transfers. Therefore, awareness of tax issues is vital for a fair settlement. Always seek expert advice to navigate the complexities of divorce finance and tax considerations effectively.
Does Alimony Count As Income For Social Security?
Alimony is classified as unearned income because it is not derived from work. This classification means it does not affect an individual's eligibility for Social Security Disability Insurance (SSDI) but can impact Supplemental Security Income (SSI) eligibility. While alimony payments are not counted in the earnings test for SSDI, they are considered when assessing SSI benefits, as SSI is needs-based. Ex-spouses may receive both Social Security benefits and alimony simultaneously, depending on the length of the marriage and other factors.
Alimony affects how much a recipient might receive in SSI, as it constitutes a form of income that can be used to support food and shelter needs. The Social Security Administration (SSA) excludes certain types of income, but alimony does not qualify for such exclusions. In divorce proceedings, alimony payments typically are deductible by the paying spouse and taxable to the receiving spouse, influencing financial considerations during separation. Ultimately, while alimony will not change SSDI eligibility, it will play a role in determining the amount of SSI benefits received, potentially causing a reduction in these payments.
Why Is Alimony A Thing?
Alimony, often referred to as spousal support or maintenance, is a financial arrangement designed to assist one spouse during and after a divorce, ensuring their standard of living is maintained. This support is crucial for lower-wage-earning or non-wage-earning spouses, who may face significant financial challenges post-divorce. The concept stems from the fairness principle, primarily benefiting those who may have sacrificed career opportunities to manage domestic responsibilities.
Alimony serves to bridge income gaps that can arise from a divorce, recognizing the contributions of a dependent spouse who may lack steady income. It is critical to understand that alimony is not strictly gender-based; it can apply to either party in a marriage. Courts typically assess cases individually and may award alimony for a set duration or longer, depending on circumstances. The enforcement of alimony aims to prevent drastic drops in living standards following a marriage’s dissolution.
While historically associated with men supporting women, modern perceptions of spousal support emphasize equitable arrangements regardless of gender, addressing financial disparities stemming from marital roles. Thus, alimony plays a significant role in easing the transition into post-married life for dependent spouses.
Are Alimony And Spousal Support Payments Unearned Income?
Alimony and spousal support payments are classified as unearned income for the receiving spouse. Such payments do not contribute to earned income for purposes of the Earned Income Tax Credit (EITC). Payments made under a divorce or separation agreement may qualify as alimony, while court-ordered payments are generally excluded from income calculations for ineligible participants. According to IRS rules, divorce or separation agreements formed before January 1, 2019, allowed the recipient to report alimony as taxable income, while payers could deduct the payments. In contrast, for agreements after this date, alimony is no longer taxable to recipients.
Unearned income encompasses various financial supports, including in-kind assistance for food and shelter. Additionally, while alimony and spousal support contribute to a dependent's needs and may include other payments, they are considered different from child support, which is not taxable. For tax year considerations, those making alimony payments can deduct them, while recipients must include them as income.
It's also significant to recognize that unearned income can derive from past work or services, including pensions and social security benefits. Therefore, alimony and spousal support payments remain crucial in determining tax obligations and support responsibilities in divorce arrangements. Understanding how these payments are classified can help individuals assess their financial situations post-divorce.
Can You Get Alimony And SSDI At The Same Time?
The Social Security Act (42 U. S. C. Ch. 7) permits disabled individuals to receive both Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) and alimony simultaneously without one impacting the other. However, the outcome of a divorce may influence the amount of alimony awarded or the disability benefits received. Alimony, also known as spousal support, serves to meet various needs and might be court-ordered or voluntary.
Although SSDI benefits typically remain unaffected by alimony, the court may consider SSDI income when calculating alimony payments. For those receiving SSDI benefits, divorcing does not negate the benefits, but it's possible for SSDI payments to be garnished to satisfy child support or alimony obligations.
If an individual on SSDI is seeking alimony, it’s crucial to meet specific qualifications as determined by the court. It is unlikely for a person receiving SSDI to be required to pay alimony due to their disability status. Courts evaluate each situation uniquely, considering factors such as financial needs and living conditions. In Rhode Island, for instance, individuals can receive both Social Security benefits and alimony concurrently. Ultimately, while enjoying SSDI benefits, one may still be liable to provide alimony depending on the case specifics and court rulings.
At What Income Is Social Security Not Taxed?
In 2025, the income limit for taxing Social Security benefits remains the same: $25, 000 for single filers, heads of household, or qualifying surviving spouses with a dependent child, and $32, 000 for joint filers. Married individuals filing separately typically must pay taxes on their Social Security if their income from other sources exceeds the specified limits. Notably, most states do not tax Social Security income, but Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia may impose taxes on portions of benefits.
Effective tax rules vary by state, with 41 states and Washington, D. C. exempting Social Security from taxation. If total income is low, benefits are tax-free but may become taxable as income rises. Up to 85% of benefits may be taxed for single filers with combined incomes above $34, 000, and similarly for joint filers with incomes exceeding $44, 000. It is a common misconception that all Social Security benefits are exempt from taxes; however, for individuals with other significant income, some portion may be subject to tax. If annual income is below $25, 000 for single filers or $32, 000 for those filing jointly, Social Security benefits remain entirely untaxed.
Do You Have To Pay Taxes On Spousal Social Security?
All Social Security benefits, including spousal, survivor, and disability benefits like Social Security Disability Insurance (SSDI), are taxable similarly. Individuals may claim spousal benefits based on an ex-spouse's work record if they meet specific requirements, including not remarrying. For married couples filing jointly, half of their combined Social Security is added to their total income to determine tax liability. Taxes apply when combined income exceeds $25, 000 for individual filers or $44, 000 for joint filers.
Up to 85% of benefits may be taxable, moving from 50% for incomes between $25, 000 and $34, 000, and up to 85% for incomes over $44, 000. Contrary to popular belief, individuals continue to pay taxes on benefits beyond a certain age, as tax liability is determined by total income. Those eligible for spousal benefits might not have their own earnings but can still claim payments through their spouse’s record. State taxation of Social Security benefits may also occur.
If filing separately, typically, benefits will incur taxes. In summary, understanding the thresholds for tax liability is crucial for those receiving Social Security benefits, as income from various sources influences the tax obligation on these benefits.
Can You Collect Social Security And Alimony At The Same Time?
Alimony and Social Security benefits can be received simultaneously by individuals eligible for both. Recipients may qualify for benefits based on an ex-spouse's Social Security record, but the amount they receive can be influenced by factors such as whether they receive SSDI or SSI, their age, and the duration of their marriage. Individuals entitled to their own retirement benefits can receive the higher amount or a combination of both benefits.
Ex-spouses may also qualify for Social Security benefits and alimony, depending on the circumstances. Alimony, also known as spousal maintenance, is financial support ordered by the court after a divorce to assist the lower-earning spouse.
In Rhode Island, it is recognized that ex-spouses have the right to receive both types of benefits. Although individuals can draw Social Security while employed, there are income limits affecting the amount of benefits they can receive without reductions. Those married for at least ten years can collect spousal benefits on their ex-spouse’s record even before the ex-spouse retires. Notably, while spousal support obligations remain in place, both alimony and Social Security benefits may affect each other, as alimony is considered income in the SSI calculation.
Is Alimony Considered Taxable Income?
The Tax Cuts and Jobs Act (TCJA) modified alimony taxation rules effective January 1, 2019. Before this change, spousal support payments were taxable income for recipients and deductible for payers. Following the TCJA, for divorces finalized on or after January 1, 2019, alimony is no longer tax-deductible for payers, nor is it considered taxable income for recipients. For agreements made before this date, alimony payments remain taxable to the recipient and deductible for the payer. This legislative update aimed to streamline tax filing for individuals, eliminating prior complexities.
Alimony payments for divorces finalized prior to the TCJA still mandate the recipient to report the income on their federal tax return while enabling the payer to deduct it. Additionally, the TCJA clarifies treatment of alimony as unearned income, impacting eligibility for the Earned Income Tax Credit (EITC).
While both parties must understand these provisions, it's also crucial to consider that child support payments remain non-deductible and non-taxable. Overall, the TCJA significantly altered the financial landscape for divorcing couples, reducing the tax burden related to alimony for many post-2019 agreements while maintaining existing rules for prior agreements. Seeking legal or tax advice is advisable for personalized guidance.
How Much Alimony Does A Spouse Owe Tax?
Alimony, or spousal support, has distinct tax implications depending on when a divorce agreement was finalized. For divorces settled before January 1, 2019, alimony payments are tax-deductible for the payer and considered taxable income for the recipient. This means the higher earner, with a taxable income of $200, 000 and paying $80, 000 in alimony, would only owe taxes on $120, 000, while the recipient would be taxed on the $80, 000 received. However, following the Tax Cuts and Jobs Act (TCJA) of 2017, for divorces finalized on or after January 1, 2019, alimony payments are neither deductible for the payer nor taxable for the recipient.
This change simplifies tax filing, meaning neither party needs to report alimony on their taxes. Current tax rules dictate that if you divorced after 2018, alimony does not impact your taxable income. For agreements executed prior to 2019, recipients must include alimony received as taxable income. When alimony is paid in a lump sum, it is treated as a capital receipt and is not taxable. Overall, understanding these tax nuances is essential for both parties to navigate their financial plans post-divorce effectively.
📹 Here’s Exactly How Social Security Gets Taxed
Social Security is an important income source for retirees, but understanding how it is taxed can be confusing. Key Takeaways: …
Thank you. My wife and I were on active duty in the US Navy. She died on active duty and is buried with full honors in Arlington National Cemetery. I retired at nearly 30 years on active duty In the Summer of 2021. I decided that I would take survivor benefit, waiting until age 70 to take mine. I would have asked her to do the same so she could be financially independent. I miss her terribly. I thank you for all of your articles.
Great information. They never say how much money is put into the system when someone passes away or even if it is put back into the system. Unfortunately there are quite a few people that paid into SS all of their working lives but never got to receive any payments from what they paid in because they are no longer with us. It is bad enough that we pay into our own SS throughout our working years, then when we no longer can work or just don’t want to because of various reasons, we still have to pay taxes on what we paid in.
All I can say right now is…wow… First, thank you for trying to explain this to the average tax payer out here. This is the first time I’ve looked into taxes on Social Security, and all I can think of is how insane the system seems to be. Why on Earth are there so many scenarios for the average person? We all know if you have enough money, none of this is even applicable, which makes it even more frustrating. I just retired last year at 59 years old. I was planning on retiring at 62, but there were multiple circumstances that allowed me to retire even earlier, saving my sanity in the process. One of these is the fact I have a pension to draw from which takes care of my expenses every month. I still have a 401k and Social Security to start drawing from, and I’m still making decisions for those withdrawals. Geoff, even with all of the information you just supplied in this article, my situation was not covered. You stated the single amounts, and the married, filing jointly amounts, to apply the three tests to when figuring your taxes. However, I have re-married in the past couple of years, but my wife and I do not file jointly. How does this information apply in my case?
Geoff – Thanks for saying, “may owe” a lot. The most valuable words in the tax code on this subject are, “may owe” and “up to”. Most YT articles on this subject wrongly state that if your combined income falls in either the 50% or 85% range that your entire SS benefit is taxed at 50% or 85% which is far from the truth. Your worksheet makes this much less complicated.
Based on the comments, there seems to be some confusion as to the 35, 50, and 85 numbers. This isn’t the tax RATE, but rather the amount of income to be taxed. In the example given, if this couple is over 65, they still have their standard deduction to use. The AGI would be 52,200 and deduction is 27,700 for a taxable income of 24,500. Marginal rate is 12%. So, what started out as 40,000 in SS benefits, is reduced to 16,200 taxable, for a total tax of 1,944 on those benefits.
Nicely explained! About a month ago I used my own spreadsheet version I created a few years ago to calculate our tax free Roth conversions for 2022 before the end of the year. I love that thing as I can dial in our taxes perfectly to maximize the form 8880 retirement savers credit and any surprises can be corrected with our new IRA/Roth contributions made post 2022 but before April 18th and credited as 2022 contributions. IRA contributions to lower our taxable income and increased Roth conversions to increase it. Once done with our Roth conversions it’s on to stepping up the cost basis in our taxable investments just in case congress wants to change the 0% LTCG/QD rate of the 12% bracket or if we find ourselves in a higher bracket later in life. I find that in this stage of our lives (and at every stage thus far) our spending or more to the point the lack thereof drives our tax plan/lack of tax liability more than anything. Cheers!
If anyone’s interested, I followed Geoff’s calculations in Excel for my 2023 amounts as well as my estimated 2024 amounts. The excel results matched the Social Security Worksheet from H&R Block 2023 software. The 2023 values resulted in Test #1 while the 2024 values resulted in Test #3. THANKS GEOFF!!
I have not seen all three tests anywhere before. Most people explaining this either do Test 1 and Test 3, or just Test 3, but with 85%. Only one other site did Test 3 with 35% (and they also had Test 1 with 85%). I’ve never seen Test 2 before with 50% of the total SS payment. It is very hard to find where the accurate source of information is when all these Youtubers are explaining it different ways. Most people I’ve seen so far just explain it with Test 3 with 85%. Update: I found the IRS Worksheet 1 and examples where this is done (Pub 915). The reason why 35% is used in Test 3 is because 50% is used for the entire amount subtracting the lower threshold, so you only need 35% more for the upper threshold to make 85%. Test 1 and Test 3 are in there by default and the lower amount is chosen. Not sure if Test 2 is in there or it’s a different Worksheet. There are nuances when lower income levels are used when trying to compare it to other Youtuber’s articles. It didn’t always tie out to the formula above exactly, but I may have missed something, or there may be assumptions I’m not using.
I am retiring shortly at age 62 and will start receiving my SSi benefit immediately while my wife will continue to work until age 65. Our income sources will be my SSI, my wife’s W-2 income and monies derived from the rental real estate we own. My question is whether or not the rental income will used in the SSI taxation formula?
Thanks for article. When I retired I received a pension from work. At 65 I started taking my SS payment. If half of my SS payment plus my pension (which is already having federal taxes taken out) equal $31,000 / yr, can you help explain to me how much I will be taxed? Any help would be appreciated as this is way over my head. Thanks.
I think your use of the term Adjusted Gross Income is inaccurate when calculating combined income. Since AGI (Line 11 Form 1040) includes the social security benefit, it would be better to use the term Other Earned Income as the SS website does. Combined Income = Other Earned Income + 50% of SS benefit. Thoughts?
I just started receiving SS benefits this year-2024. I did a pro-forma tax return using my actual 2023 return and adjusting it for expected SS payments this year and submitting quarterly Federal Income Tax estimates to the IRS. My question is will tax preparation software like Tax Cut and Turbo Tax automatically select the best option for you?
As a matter of fairness I have no problem paying FITs on my social security benefit since my employers contributed approximately half of my total contribution. The employers was a deductible expense for them and that income to me has never been taxed. Anyone who says they should not be taxed on social security income because they have already paid taxes on it is incorrect. They have only paid taxes on one half of their total benefit. However I do think the income thresholds should have been indexed at origination of the law as it was inevitable that wage inflation would push most incomes above the thresholds. If they had been indexed the threshold for a single person would be almost $79K while a married couples would be almost $99K.
One portion which seems to be missing from this vid is the Standard Deduction. The SD increased significantly under the Trump tax cuts. So even in Jeff’s formula where $16,200 of SS is subject to tax this is then added to the 36,000 agi So 16.2k + 36k = 52.2k now deduct 26k or so standard deduction. This is only 26,200 of taxable income. The first 20,500 is at 10%. 2,050. The next 5,700 is at 12%. 684 So 2,734 in Fed taxes from 76k income. This is an effective tax rate of 3.6% And here is another kicker. Who would have 36k AGI. If this is from IRA withdrawals then at a 4% annual withdrawal would be 900k balance. The numbers not very realistic. Most will have a bigger SS and smaller IRA withdrawal. So taxes even lower. If one has a pension it’s a bit different.
My husband and I are both on Social Security and take out 15% for each of us monthly. We had to get a new roof so I took my pension and paid the 20% interest rate to cash it out and we’re able to pay for the roof plus some of our savings. Will us taking out 15% monthly help reduce the amount we will pay at tax time?
How it works, if our combined income is between the first and the second thesholds? For example, our combined income is 40K. According to the third test, the taxable amount is 0.5x(40K-32K) + 0.35X(40K-44K) = 0.5x8K + 0.35x(-4K) = 4K – 1.4K = 2.6K. So, only 2.6K from my retirement checks are taxable? Please, comment.
I tried checking last years taxes using your worksheet to make sure I paid the least amount in taxes. I noticed what you call AGI or adjusted gross income is different form what the IRS calls AGI. Your AGI does not include Social Security income but AGI in the 2022 form 1040 (line 11) includes Social Security payments (line 6b added in line 9).
Geoff – 9 years till retirement and I’ve creating a retirement earnings, costs and taxes workbook based on what I currently anticipate as where my wife and I will be. In this workbook I’ve created a spreadsheet with the formulas for the 3 tests on calculating social security taxes. The workbook will update automatically when I change the yearly variables, such as new salaries, projected social security benefits, tax thresholds, etc. While I’m glad you created the worksheet for us to use to do this I’ve been looking for where on the IRS and/or Social Security websites that this test is available for retirees to use. This way I can look every year to see if the rules have changed so I can adjust my spreadsheet(s) accordingly. Can y ou tell me where I can find this?
Greetings Geoff what if you are reporting your overage in income a job to SSI and the money is being deducted monthly for every $2.00 over they deduct $1.00 do we follow the same process and will that change what is taxable? I would appreciate a reply in a article if possible. Thanks for this current article.
Hello, quick question, I am a 62 yo retired Federal employee. I get a monthly annuity and have Federal tax taken out of that. My wife still works and has Federal tax (10%) taken out each paycheck. This past year we got a Federal tax refund of over $2k. Since I turned 62 two months ago, my SSA Supplement ended. Starting this month I will begin receiving my Social Security benefit payment which works out to be about $700 more than my SSA supplement was per month. My question is, since my wife and I received a good amount from last years Federal tax return, am I required regardless to have additional Federal tax taken out of my Social Security benefit even if I think we are paying adequate Federal Taxes on our income? Thank you.
What if we are working now and earning high income but retire mid-year and begin pulling Social Security. Is Social Security taxed at that mid-year earning point or would it include my income from the first 6 months of the year. If the latter, would it be best to delay Social Security to the start of the new year.
If the gubbermint were interested in taxing fairly, only the total amount of your income would be considered as potentially taxable, NOT the source of it, as it is now. The federal gubbermint wants us seniors completely dependent upon THEM. If seniors have done the responsible thing and provided for their retirement in additional ways (even though their total income might be far less than someone drawing only SS) they shall be punished, by having their SS taxed.
If my total annual income is UNDER 34k per year (one pension payment monthly plus SSI) and I am single, unmarried…I am assuming up to 50% of my SSI is taxable. Is that correct? And how is it taxed? I guess I am wondering if I should withhold taxes from my Social security check? I am not retired yet but getting ready to. Is it wise to withhold 12%? Your response would be sooo appreciated. I am finding this stuff so confusing and I am single and need any guidance you could offer.
Thanks, Geoff, fine article. I’ve been reading over many different pubs trying to figure this out. You make it simple. One question: Are you, as a taxpayer, able to choose which test (1,2, or 3) you want to be taxed at or will the IRS always default to the least of the 3 amounts for your tax liability? Appreciate the vid….
Is there anything different about the first year you go on social security? I will earn a nice income until I retire from my job in June, and then will go on social security, drastically reducing my income. Sounds like I will have to pay taxes on a higher percentage of my SS because of the income I earned in the first half of the year?
Thank you SO much Geoff! I love how clearly you explain things. I have a question regarding your SS Tax calculation worksheet: if the combined income percentages calculated in Test 2 or Test 3 are negative numbers – are they subtracted from the total? Changed to zeros – which have no effect on the total? Or do they zero out the total – if the total Test calculation becomes negative as well? Thank you!
So under your example, if you are not at full retirement age, they would have to give back $1 for every $2 above $34k per couple. So you colud be taking in less SS due to higher non SS income reducing your SS, and then on top of the reduced SS, you are taxed on what’s left over? You should do a article on this for people who want to retire early, as this is not talked about together, but jyst as two separate topics.
This is really easy. Step 1. How much did you receive? Step 2. Send it in. Why is social security taxed when it is an insurance policy? Republicans need to quit raiding social security funds for other purposes. The amount you get out of social security should be directly proportional to the amount you put into it.
Thank you. I wasn’t aware of the three calculations. The sentence @6:23 doesn’t seem logical after listening several times. You are remarking on the failure of the SSA to raise these thresholds. And you then construct a counter cyclical…. “By raising the thresholds, the SSA collects less tax because the taxes paid on social security go right back into the Social Security trust.” Perhaps you wanted to use the word AND instead of BECAUSE. But you lost me here. It seems that by not raising thresholds, the SSA recoups in taxes what it gave away in COLA’s. Please correct me if I’ve misunderstood.
I have a State pension but im working full time in my retirement, double dipping. They are taking social security out of my paycheck every two weeks. I was told that if I have a pension, then I either will not qualify for social security or it will be massively cut from what I would normally get if I didn’t have a pension. Is this true? And if so, how is it legal to force me to pay into social security if I don’t get the benefit?
A person works there entire life, slaving away. Their Payroll check is Taxed, and then everything that you purchase is taxed. At the end of each year, you have to pay Federal Tax, maybe State Tax. Your Earned income is Taxed – not once, not twice, but three times or more. And you do this for forty years, and then retire. Most Retired people agree that Social Security retirement benefit Checks ought NOT be taxed, they earned that money. SSA cuts you a check each month, and demand that you return a portion of that check back to them in the form of a tax, is stupidity.
The mere thought of paying a tax on a tax is infuriating. Our country is overdue for a revolution, these elected “leaders” we bow to have entirely too much power. At a minimum once you reach 65 you should automatically be exempt from any taxation, you’ve paid your share, now go enjoy the fruits of your labor.