Tax Information And Guide

Newsweek poll

Tax Software By Alan Fein

Grassley views the Social Security legislation as part of a larger reform package. He believes any reform of Social Security, including personal savings accounts, needs to include broader changes to tax incentives for retirement savings. In an interview with Bloomberg News, Grassley said that tax policy needs reform to encourage more investment in company sponsored 401(k) plans and personal IRAs. "It goes way beyond Social Security, and if you're talking about an ownership society, Social Security would be just a small part of it."

Software Tax Most American's think President Bush's plan to reform Social Security by allowing people to invest in the stock market is too risky, according to the latest Newsweek Poll.

Every Landlord Tax Deduction If you would like to receive late breaking news on issues covered by AXcess News then you need to subscribe. By joining, you can stay ahead of the pack and receive the latest news in your email in-box first.Print This Page

The Social Security Administration has conducted its annual unveiling of the increased maximum amount of earnings subject to Social Security (FICA) employment (SECA) taxes. The wage base for the Social Security portion will rise to $97, 500 for 2007, up from $94, 200 in 2006. So if you're one of the 10 million or so folks who earn more than $97, 500, you will be paying more FICA tax to the maximum tune of $204.60. (Remember that there's still no cap on the amount of earnings subject to the separate Medicare tax.)

Tax Help Feb 5, 2005 (AXcess News) Washington - Most American's think President Bush's plan to reform Social Security by allowing people to invest in the stock market is too risky, according to the latest Newsweek Poll. Though 36 percent say it's necessary to improve the rate of return for the program.

As a compromise over the contentious partisan issue of using personal accounts within the system, some Republican lawmakers in the House of Representatives on July 14, 2005, introduced legislation that would establish limited optional private Social Security accounts funded only by the annual surpluses collected from current payroll (Social Security) taxes. Under existing law, these surpluses are regularly used by the federal government to fund annual spending budgets, with IOUs written to the Social Security Trust Fund, presumably to be paid back at some later date through the collection of income taxes or other general revenue.

Help Tax Sixty-five percent agreed with President Bush's view that he outlined during his state of the union address, that Social Security, the government program that provides economic assistance to retirees and the disabled, faces a funding crisis and will be bankrupt in less than four decades.

Worksheet to Figure Taxable Social Security Benefits Many of those who receive Social Security retirement benefits will have to pay income tax on some or all of those payments. More specifically, if your total taxable income (wages, pensions, interest, dividends, etc.) exempt income, plus half of your Social Security benefits exceed $25, 000 for singles, $32, 000 for marrieds filing jointly, and $0 for marrieds filing separately, the tax man will want a cut of your benefits.

Ernst Ernst Guide Guide Tax President Bush's plan would allow as much as 4 percent of Social Security payroll tax money to be diverted into individual savings accounts to financially aid the Social Security retirement system.

Tax Return Of those Americans polled, 36% said they oppose diverting tax money into individual savings accounts; 26% approve and 30% weren't aware of the terms of Bush's Social Security reform program.While on his trip to promote his Social Security plan, President Bush said while on a visit to Nebraska that the Social Security program as it now stands will go "flat bust" by 2042."The problem is that the number of people putting money into the system is declining,'' Bush told a rally in Omaha. "The status quo is unacceptable to younger workers."Advertisement

Return Tax According to Newsweek's poll, younger Americans were more likely to be evenly divided on the issue than older Americans. Among 18 to 34-year-olds, 28 percent approve of the president's plan and 29 percent oppose, the survey shows. Among 35 to 44-year-olds, 28 percent approve, 33 percent oppose. Among 45 to 54-year-olds, 30 percent approve, 34 percent oppose. In the 55-and-older age group, 22 percent approve and 45 percent oppose, Newsweek said.

Guide Guide Master Master Tax The American Association for Retired Persons, AARP, and democrats, oppose Bush's plan, disagreeing with the figures and future shortfall. That group says Bush's proposal would put retirement benefits at risk and increase the federal budget deficit.

Tax Preparation Newsweek's poll showed that 40 percent believe the existing system of government taxation works, where the funds paid into Social Security by one worker goes to support the retirement of another and that it shouldn't be changed.

Preparation Tax Close to that number, 39 percent believe that the government should direct workers' money into the stock market for a higher return. Within this group, there is a significant generation gap: 53 percent of 18 to 34-year-olds say using the market to get higher returns is the best way, while 54 percent of 55-year-olds and older say that the current system is best for funding Social Security.

Employer Tax Guide President Bush says that people 55 and over would face no changes in their Social Security benefits. But they did have the option, if born in 1950 or later, to set up private accounts if they wished.

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