Obama should eliminate federal income tax on Social Security for seniors

[Peregrine Took]

making under 200K per year.

It never should have been initiated in the first place and it really puts us behind the "8 ball" financially.

Its amazing what a difference that amount makes in your day to day life.

[glinda]

1. I say 75-100 or less not 200.

People with 200 thousand can live quite well.

[napi21]

2. Just how many seniors do you know who make enough to have to

pay income taxes? I don't know ANY! We are both on SS and our income is SS only, which is about $33,000/yr. We're doing just fine financially and are keeping our savings for any unforseen emergencies.

Personally, I think if you are on SS and have an income even close to $200,000, you should pay the damn income tax and be happy about making so much!

[FrenchieCat]

3. I think the figure is more like 50K, not 200K.

[BrklynLiberal]

14. I just got a notice today that said if you earn more than 25K you have to pay taxes

and until you are receiving full social security..as opposed to early SS..you can only earn 14K or you lose part of the SS

If you are under normal (or full) retirement age (FRA): when you start getting your Social Security payments, $1 in benefits will be deducted for each $2 you earn above the annual limit. For 2009 that limit is $14,160; and for 2008, that limit is $13,560. Remember, the earliest age that you can receive Social Security retirement benefits remains 62 even though the FRA is rising.

# In the year you reach your FRA: $1 in benefits will be deducted for each $3 you earn above a different limit, but only counting earnings before the month you reach FRA. For 2009, this limit is $37,680; for 2008, this limit is $36,120.

# Starting with the month you reach FRA:, you will get your benefits with NO limit on your earnings.

Are my Social Security benefits taxable?

All of your Social Security benefits are tax-free if your modified adjusted gross income (AGI) plus one-half of your benefits is below the base amount of $25,000 if you are single, or $32,000 if you are married and file a joint return.

After that, the calculations get more complicated.

If your modified AGI plus one-half of your benefits exceed the base amount, then up to 85% of your Social Security benefits are taxable.

Modified AGI is the sum of your adjusted gross income (excluding Social Security benefits), tax-exempt interest, any amounts of excluded foreign earned income or housing, and any interest excluded from gross income because qualified U.S. Series EE bonds were redeemed to pay qualified education expenses.

[demigoddess]

4. amen!!!!!!!!!!!!!!!

especially those over a certain age. my father in law at 99 is still paying tax on what little he has left, mostly ss

[patrice]

5. Wasn't something like this part of his campaign platform? nt

[drm604]

6. That's what I remember.

As I remember it, it was no income tax on SS recipients making under $50k.

[DesertFlower]

7. the tax used to be on 50%. clinton

raised it to 85%. i'm retired, but hubby still works so i have to pay. even after he retires our income will be high enough to pay on 85%. we will have to pay tax on his pension too.

who says when you retire you spend less? i think you might spend more given the fact that you have more free time on your hands. even if the mortgage is paid, you still have homeowners insurance, real estate taxes and car insurance.

[Captain Hilts]

8. Let's talk about regressive payroll taxes. nt

[stopbush]

9. He should also eliminate taxes on unemployment benefits,

a gift to those in need from Saint Ronnie of the Raygun.

Huge tax breaks for billionaires while shafting those in desperate situations. Why continue such a regressive policy?

[Demobrat]

10. Under 50K is the figure I've heard him use.

That seems fair.

[AlinPA]

11. During the campaign I thought he said that may be his proposal.

[madrchsod]

12. that would be nice

i just applied for early and it`s not much. no taxes would put a few more dollars in the bank. at least i`ll have the money to pay the mortgage each month.

[madrchsod]

13. try.... no tax on overtime and bonus/ profit sharing

no tax on these would put a lot of money into circulation.....

[trof]

15. My 3 proposals:

1. Repeal state and federal income tax on social security benefits.

2. Allow retired individuals to withdraw $10,000 annually ($20,000 for couples) from an IRA/401-K/etc. tax free.

3. ANY funds withdrawn from a retirement account for the purpose of paying out-of-pocket expenses in connection with either natural or man made disasters (as declared by state of federal authorities) should not be taxed as income at either the state or federal level.

#3 really bit me in the butt when I had to lay out a lot of cash (withdrawn from my IRA and counted as "income") for cleanup and other uninsured (and uninsurable) expenses following Hurricane Ivan.

[shimmergal]

16. His campaign promise to

eliminate it for up to $ 50,000- earners seems more designed to help those who need it, BUT

What about us who don't have enough income to pay _any_ income taxes? If your income is mostly social security, that's likely to be the case. And this January is the first time in ages its annual COL increase has come anywhere near the jump in actual living costs.

Wage earners who're in similar situations at least qualify for the Earned Income Tax Credit.

We need an Unearned Income Tax Credit for retirees who worked for years, but now because of health and/or other circumstances, have to rely on social security for their needs.

The Bush stimulus plan at least sent us $300. (Much as I hate to say anything good about that pretzeldent.) But under Obama, there's been nothing so far. Geez, we'd turn around and put it right back into the economy as fast as anyone else!

Or, if they don't want to do this, how about a Jobs bank specifically aimed at over-65s?

[shimmergal]

17. Oops! Update

on the above post.

I just got a notice from Social Security that they are indeed sending a $250 stimulus payment, sometime in late May.

What a shock (but a pleasant one)! From everything I'd read, it was only going to SSI recipients.

It does tend to confirm that NObody knows what's actually in the stimulus bill, though!

[javelin]

18. Obama isn't going to help seniors, forget it.

Young people got him elected and he knows it. He is not going to help seniors with anything.