Social Security Tax Break in 2011 Vol. More money for everyone?

[hybridsoldier23]

I've been reading a lot about the Tax break in 2011 that's supposed to take less SS out of our paychecks and put more money in my hand. 

How I read it is:

-if you make more than 20k but less than 75k you will get the maximum SS cut

-If you make over 75k you still get a cut but it's not as much as the 20-75k bracket

-If you make less than 20k you actually lose money

Now what I don't understand is the "make work pay" tax credit and how this actually relates to the cut. I also want to know if the 75k bracket is on taxable earnings (including bonuses and profit share) or are those excluded somehow. I'm not an accountant or tax savvy. Can anyone break it down?

http://money.cnn.com/2010...l_janpaychecks/index.htm

The IRS on Friday asked employers "to adjust their payroll systems as soon as possible but not later than Jan. 31, 2011. For any Social Security tax over withheld during January, employers should make an offsetting adjustment in workers' pay as soon as possible, but not later than March 31, 2011."

Once everything comes out in the wash, however, the Social Security tax breaks will mean several hundred if not a couple of thousand extra dollars in many workers' pockets for the year.

How much more they will net relative to this year depends on whether they qualified for the expiring Making Work Pay credit. That credit provided up to $400 to any working individual making less than $75,000 (or up to $800 for working couples making less than $150,000).

0:00/2:59Readers chastise pols over tax deal

For instance, individuals who make $50,000 will see a bump of $1,000 in take-home pay, which is $600 more than the Making Work Pay credit they got this year. For a couple at that income level, it will mean $200 more than they received under Making Work Pay.

Individuals making $100,000, who didn't qualify for Making Work Pay this year, will see a $2,000 bump in take-home pay for the year. For couples at that income level, who did qualify, that $2,000 bump will represent a $1,200 increase over the money they received under Making Work Pay.

For people making less than $20,000 (or couples making less than $40,000), they may actual see a drop of about $210 on average in their take-home pay relative to this year, because the payroll tax break will be worth less to them than the Making Work Pay credit was.

 

[hybridsoldier23]

I've been reading a lot about the Tax break in 2011 that's supposed to take less SS out of our paychecks and put more money in my hand. 

How I read it is:

-if you make more than 20k but less than 75k you will get the maximum SS cut

-If you make over 75k you still get a cut but it's not as much as the 20-75k bracket

-If you make less than 20k you actually lose money

Now what I don't understand is the "make work pay" tax credit and how this actually relates to the cut. I also want to know if the 75k bracket is on taxable earnings (including bonuses and profit share) or are those excluded somehow. I'm not an accountant or tax savvy. Can anyone break it down?

http://money.cnn.com/2010...l_janpaychecks/index.htm

The IRS on Friday asked employers "to adjust their payroll systems as soon as possible but not later than Jan. 31, 2011. For any Social Security tax over withheld during January, employers should make an offsetting adjustment in workers' pay as soon as possible, but not later than March 31, 2011."

Once everything comes out in the wash, however, the Social Security tax breaks will mean several hundred if not a couple of thousand extra dollars in many workers' pockets for the year.

How much more they will net relative to this year depends on whether they qualified for the expiring Making Work Pay credit. That credit provided up to $400 to any working individual making less than $75,000 (or up to $800 for working couples making less than $150,000).

0:00/2:59Readers chastise pols over tax deal

For instance, individuals who make $50,000 will see a bump of $1,000 in take-home pay, which is $600 more than the Making Work Pay credit they got this year. For a couple at that income level, it will mean $200 more than they received under Making Work Pay.

Individuals making $100,000, who didn't qualify for Making Work Pay this year, will see a $2,000 bump in take-home pay for the year. For couples at that income level, who did qualify, that $2,000 bump will represent a $1,200 increase over the money they received under Making Work Pay.

For people making less than $20,000 (or couples making less than $40,000), they may actual see a drop of about $210 on average in their take-home pay relative to this year, because the payroll tax break will be worth less to them than the Making Work Pay credit was.

 

[essential1]

And at the process the first nail to getting rid of social security..

Because come next year.. When they try to put the payroll tax back where it was republicans will say that they are trying to raise taxes.. So it will stay at this lower rate (most likely)... So billions and by a decade or 2, trillions, of dollars will instead of going to Social Security.. Go to us to buy stupid #%#+ with..

For those who only care about the next 6 days then it's great..... If you look down the road it is disastrous

 

[essential1]

And at the process the first nail to getting rid of social security..

Because come next year.. When they try to put the payroll tax back where it was republicans will say that they are trying to raise taxes.. So it will stay at this lower rate (most likely)... So billions and by a decade or 2, trillions, of dollars will instead of going to Social Security.. Go to us to buy stupid #%#+ with..

For those who only care about the next 6 days then it's great..... If you look down the road it is disastrous

 

[ooiron manoo]

What if you have a great retirement plan?  Should SS contributions matter?

 

[ooiron manoo]

What if you have a great retirement plan?  Should SS contributions matter?

 

[essential1]

Originally Posted by ooIRON MANoo

What if you have a great retirement plan?  Should SS contributions matter?

Never know about that by the time you are 65...... But even by the time you turn 65, say you have this great retirement that's a small minority of the country.. Most people retire and have little.  Social Security is no gold mine, but it has kept hundreds of thousands of elderly people from living on the street..

 

[essential1]

Originally Posted by ooIRON MANoo

What if you have a great retirement plan?  Should SS contributions matter?

Never know about that by the time you are 65...... But even by the time you turn 65, say you have this great retirement that's a small minority of the country.. Most people retire and have little.  Social Security is no gold mine, but it has kept hundreds of thousands of elderly people from living on the street..

 

[koudie from brooklyn]

ahh.. idk about this.

 

[koudie from brooklyn]

ahh.. idk about this.

 

[dathbgboy]

Eh, It was bound to happen eventually. My generation will never see it.

 

[dathbgboy]

Eh, It was bound to happen eventually. My generation will never see it.

 

[dt43]

Originally Posted by Essential1

And at the process the first nail to getting rid of social security..

Because come next year.. When they try to put the payroll tax back where it was republicans will say that they are trying to raise taxes.. So it will stay at this lower rate (most likely)... So billions and by a decade or 2, trillions, of dollars will instead of going to Social Security.. Go to us to buy stupid #%#+ with..

For those who only care about the next 6 days then it's great..... If you look down the road it is disastrous

thank you. this is a typical gov't sham you read about in Econ 101, the government is trying to play off of the majority of consumers being stupid.

this policy will not come close to boosting the economy enough to make it worthwhile, it will just be SS dollars down the drain. theres no way Obama would be able to repeal this for as long as he's in office, much less a Republican president.

 

[dt43]

Originally Posted by Essential1

And at the process the first nail to getting rid of social security..

Because come next year.. When they try to put the payroll tax back where it was republicans will say that they are trying to raise taxes.. So it will stay at this lower rate (most likely)... So billions and by a decade or 2, trillions, of dollars will instead of going to Social Security.. Go to us to buy stupid #%#+ with..

For those who only care about the next 6 days then it's great..... If you look down the road it is disastrous

thank you. this is a typical gov't sham you read about in Econ 101, the government is trying to play off of the majority of consumers being stupid.

this policy will not come close to boosting the economy enough to make it worthwhile, it will just be SS dollars down the drain. theres no way Obama would be able to repeal this for as long as he's in office, much less a Republican president.

 

[snaggykicks]

And here we go

 

[snaggykicks]

And here we go

 

[rko2004]

This system is built to fail. It just is. There are so many rules to money and stuff its only there to fail.

 

[rko2004]

This system is built to fail. It just is. There are so many rules to money and stuff its only there to fail.

 

[bdeazy]

Originally Posted by RKO2004

This system is built to fail. It just is. There are so many rules to money and stuff its only there to fail.

Maybe only those who can't follow or use the system to their advantage fail. nah, scratch out the maybe.

 

[bdeazy]

Originally Posted by RKO2004

This system is built to fail. It just is. There are so many rules to money and stuff its only there to fail.

Maybe only those who can't follow or use the system to their advantage fail. nah, scratch out the maybe.

 

[rko2004]

Originally Posted by BdeaZy

Originally Posted by RKO2004

This system is built to fail. It just is. There are so many rules to money and stuff its only there to fail.

Maybe only those who can't follow or use the system to their advantage fail. nah, scratch out the maybe.

I'm speaking all this financial stuff is built to fail. Stocks and all this inflation stuff. Its man made and its made to fail.

People are starving because we don't have enough paper to pay them. Everyone could be wealthy. Everyone could have a roof over their head. The people in charge now and long before us chose not to have things be equal because of power. The thirst for power will be the downfall of man, be it past, present or future.

 

[rko2004]

Originally Posted by BdeaZy

Originally Posted by RKO2004

This system is built to fail. It just is. There are so many rules to money and stuff its only there to fail.

Maybe only those who can't follow or use the system to their advantage fail. nah, scratch out the maybe.

I'm speaking all this financial stuff is built to fail. Stocks and all this inflation stuff. Its man made and its made to fail.

People are starving because we don't have enough paper to pay them. Everyone could be wealthy. Everyone could have a roof over their head. The people in charge now and long before us chose not to have things be equal because of power. The thirst for power will be the downfall of man, be it past, present or future.

 

[omgitswes]

sweet, i never really felt the blow of taxes because I don't have many responsibilities.
So I can't really chime in, but less money taken out of my check is always a plus

 

[omgitswes]

sweet, i never really felt the blow of taxes because I don't have many responsibilities.
So I can't really chime in, but less money taken out of my check is always a plus

 

[wawaweewa]

How about the feds let me choose if I want to pay into SS or not. In the end I only receive the amount I have put in.
How about that.

Of course the Feds won't allow that because  as corny as it sounds, SS is a classic Ponzi scheme. It's predicated on incoming capital being able to pay of past investors.