Social Security Benefits

Most Confusing Parts Of The Income Tax Code, Part 6: Taxes On Social Security Benefits

Many provisions of the Internal Revenue Code are complicated. Proper interpretation of the rules and regulations contained in these provisions requires the assistance of an experienced and knowledgeable tax professional. The sixth part of the series about the most confusing provisions of the Internal Revenue Code addresses taxes on social security benefits.

Why Is It Confusing?

  • Complicated formula to determine benefits
  • Requires a lengthy multi-step worksheet to calculate

Tax Issues for new Widows and Widowers

It’s a traumatic experience to lose a spouse. While there is little that can be done to replace this physical and emotional loss, the Tax Code provides some relief for newly widowed taxpayers. Here is a summary of some of the tax breaks for the newly widowed:

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SOCIAL SECURITY TAXES DEDUCTIONS

Is There A Right To A Refund Of, Or A Deduction For, Social Security Taxes Paid Based On The Fact That A Taxpayer Has Waived The Right To Receive Social Security Benefits Or Has Donated Social Security Taxes Or Benefits To The Government?

As long as they are taxes, there will be taxpayers that consider any and all arguments, schemes, and angles to avoid paying them. The 21st century has seen a rise in situations where some taxpayers are filing claims for refund of their Social Security taxes using meritless arguments which have consistently failed in the past and which will consistently fail in the future.

SOCIAL SECURITY TAXES DEDUCTIONS

As long as they are taxes, there will be taxpayers that consider any and all arguments, schemes, and angles to avoid paying them. The 21st century has seen a rise in situations where some taxpayers are filing claims for refund of their Social Security taxes using meritless arguments which have consistently failed in the past and which will consistently fail in the future.

Top Ten Biggest Tax Breaks

A lot of speeches have been given of late about tax cuts,  tax breaks, deductions, etc.  So, who gets  the biggest tax breaks?  According to New  York Tax Attorney at Thorgood Law Firm, the Top Ten tax breaks are:

  1. $181 billion – Employer contributions towards workers’ medical insurance premiums and medical care
  2. $165 billion – Various retirement plan contributions and earning not taxed
  3. $101 billion – Mortgage Interest deduction
  4. $84 billion – Lower tax rates on long-term capital gains and qualified dividends
  5. $69 billion – Deduction for state and local taxes
  6. $46 billion – Deduction for charitable contributions

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