There are reasons for Medicare to Increase…. Your income is higher. That’s good and we hope your income stays higher. But what if it increase because of an unusual event… can we explain that and get it lowered? Well, yes, kind of and maybe. Check this list. Even if your reason is not on this […]
Category: Social Security
2024 Social Security COLA Increase
Cost of Living Adjustment (COLA) will increase 3.2% for more than 71 million Americans. For more information go to www.ssa.gov It is a good idea to go to www.ssa.gov and make sure the earnings records are correct. When I did it, found 2 missing years. Being that I keep all tax returns I was easily able to provide […]
RECOVERY REBATE CREDIT & Social Sec Card Wording
RECOVERY REBATE CREDIT ELIGIBILITY You are not eligible for the Recovery Rebate Credit claimed on a 2020 tax return if any of the following applies: You may be claimed as a dependent on another taxpayer’s 2020 return (for example, a child or student who may be claimed on a parent’s return or a dependent parent […]
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Earned Income Credit & Valid Social Security Number
Earned Income Credit & Valid Social Security Number To qualify for the EITC (Earned Income Tax Credit), everyone you claim on your taxes must have a valid Social Security number (SSN). To be valid, the SSN must be: Valid for employment Issued before the due date of the tax return you plan to claim (including extensions*) For […]
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2020 Social Security & Full Retirement Age (FRA)
If you are younger than full retirement age and earn more than the yearly earnings limit, the amount you receive may be reduced. If you are under full retirement age for the entire year, $1 is deducted from your benefit payments for every $2 you earn above the annual limit. For 2020, that limit is $18,240. In the […]
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Canadian Pensions
U.S. social security benefits paid to a resident of Canada are taxed in Canada as if they were benefits under the Canada Pension Plan, except that 15% of the amount of the benefit is exempt from Canadian tax. According to the IRS, special tax treatment applies to payments received from the Canadianpension, the Quebec pension plan, […]
2015 Social Security Withholding
Social Security Taxable Maximum Rising to $118,500The maximum amount of earnings subject to Social Security tax will rise to $118,500 in 2015, from the current $117,000, the Social Security Administration announced October 22, 2014 […]
2014 Social Security Wage Base
2014 Social Security wage base will increase by $3,300 to $117,000. The rate of 6.2% for social security remains the same and applies to both the employee and the employer. The rate of 1.45% for medicare remains the same and applies to both the employee and the employer and applies to the total wages (no limit). A […]
RMD for 70 1/2 in 2014
If you are turning 70 1/2 in 2014 a REQUIRED MINIMUM DISTRIBUTION (RMD) is necessary from your retirement accounts. You can either withdraw the 2014 distribution by 12.31.14, OR you can defer for three months to 04.01.15. The option to defer is permitted only for 2014, the first year of RMD. Thereafter, you will need to take the RMD […]
RMD Penalty
Failure to withdraw the REQUIRED MINIMUM DISTRIBUTION (RMD) from retirement accounts will result in a 50% penalty of the required amount that was not distributed! Call us if you need further clarification. […]