Update: The payroll tax cut was allowed to expire on December 31, 2012. You should have noticed an increase in your tax withholding on your first paycheck in 2013. In a surprising early decision (for Congress), the 2012 payroll tax cut was extended for the remainder of the year. After the House and Senate couldn’t […]
As discussed in ‘Congress Expected to Extend Payroll Tax Holiday into 2012’ there is quite a debate going on in Congress right now regarding Social Security. While the main question is whether to extend the Social Security tax cut, an underlying question is how to keep Social Security solvent. Every year, Congress waits until the […]
Once you start receiving Social Security disability benefits, your first question may be “is Social Security disability taxable?” Unfortunately, the answer to that question is “it depends”. Read on to find out what Social Security disability is, who must pay taxes on their benefits, and how to report your benefits at tax time. What is Social […]
What is the Social Security tax rate for 2011? If you are an employee, you know that part of your paycheck goes towards payroll taxes. A big chunk of those taxes go towards Social Security to pay for retirement and disability benefits to people who qualify. The Act that requires employers to withhold Social Security […]
For most people, Social Security retirement benefits are not taxable. However, about a third of people receiving retirement benefits must pay income tax on a portion of their benefits.