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Post by Jolly on Sept 6, 2021 17:15:23 GMT
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Post by Txsteader on Sept 6, 2021 17:34:50 GMT
I wasn't aware that any states taxed SS benefits. I thought double taxation was illegal.
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Post by Jolly on Sept 6, 2021 17:41:43 GMT
Federal and state income taxes are legal. Not all states have income taxes.
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Post by Txsteader on Sept 7, 2021 11:54:32 GMT
Right, but FICA is a payroll tax used to fund SS benefits. So essentially, they're taxing a tax, no?
The only difference between a payroll tax and income tax is that the employee and employer pay equally (payroll taxes), whereas income tax is "money taken from wages"....which doesn't make sense as to a differentiation b/c FICA taxes are monies also taken from wages.
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Post by Jolly on Sept 7, 2021 12:06:49 GMT
Tax expert, I'm not. I know I do pay state taxes on my wife's Social Security.
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Post by Ozarks Tom on Sept 7, 2021 19:13:26 GMT
Txsteader, Yes, it boils down to a tax on a tax. But then, since when should we expect government to make sense or be fair? For over 40 years I paid both sides of the SS tax, being self-employed, yet some folks think someone on SS is "on the dole". Nope, the government took those dollars and spent them as fast as they came in, leaving IOUs in their place. If that money had really been "saved for our retirement" it would have been drawing interest when "borrowed" and amount to a whole lot more than we'll ever receive in "benefits".
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Post by Txsteader on Sept 7, 2021 19:43:22 GMT
Ozarks Tom, you make a good point I'd forgotten about; those who are self-employed pay 'both sides' of the SS tax. A tax, taken from wages/income. Like I said, I always thought double taxation was illegal. I'm just kinda surprised nobody has challenged it as such. Perhaps the law has been changed & I'm simply not aware of it.
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