Social Security users could be in luck very soon. If this new bill, which has just reached the United States Congress, goes through, they will save a lot of money. It is true that not all Social Security users pay taxes today, but those who do pay will not have to worry about it starting next year. Both pensioners of retirement age and people with disabilities fall into this group. It doesn’t matter what kind of benefit we have, since the important thing is the extra income we make.
Currently, if you have a Social Security benefit and work at the same time you have to watch out for income. This is because you pay part of your SSA benefit as taxes. This law is created so that everyone can contribute their taxes in a consistent manner. Still, it is well true that not everyone who reaches the taxable minimum has a good benefit. Therefore, this new bill is intended to be fairer in this regard and to make those who really have a large source of income do have to pay taxes.
For that reason you have to pay close attention to all the details of this bill. Currently, if you earn between $25,000 and $34,000, you have to pay taxes on 50% of your Social Security. On the other hand, if you have an income of more than $34,000, this percentage increases to 85%. With this new bill this changes completely and the taxable minimum goes up so that everything is fairer for Social Security users.
Who pays Social Security taxes with the new bill?
Starting next year 2023, if this law goes through, the people who have to pay these taxes will change. In this way, only people who earn more than $250,000 a year will have to pay part of their Social Security as taxes. Thanks to this new proposal, a greater distribution of the money can be made.
Therefore, pay attention if you have an income higher than that. On the other hand, if you have an income lower than $250,000 per year you could forget from 2023 to pay taxes. Even so, we still have to wait for the bill to end up being a new law. Also, in case of doubts remember that it is a very good idea to contact a specialist advisor or a lawyer to help us to pay the mandatory taxes. This way we avoid unpleasant surprises at the time of collecting our monthly Social Security benefit.