As part of our Elder Law work, we often address social security questions. I recently read a good article by Renee DeFranco, Social Security Myths Debunked, which addressed 7 important social security questions. Here are 2 of the questions with part of the answers and a link to the article so you can review the other 5 questions and answers.
Q: Social Security is predicted to run out of money within the next 30 years. Should we start collecting as soon as possible, at age 62, before there's nothing left to claim?
A: According to Social Security commissioner Michael J. Astrue, benefits for today's retirees are safe. However, if nothing is done to reform the system, the trust funds will begin to lose money in 2016 and will run out by 2037. A Social Security spokesperson John Shallman assured that Social Security tax income would be enough to pay roughly 75 percent of scheduled benefits through 2083. However, if the thought of insolvency keeps you up at night, it might be better to cash in early.
Q: Do I have to pay income tax on my Social Security benefits?
A: Less than one-third of current beneficiaries pay taxes on their benefits, according to the Social Security Administration. The rule: If you file a federal tax return as an "individual" and your total income is more than $25,000, you will have to pay taxes. If you file a joint return, and you and your spouse have a total income over $32,000, you will also have to pay taxes. Consider having taxes withheld from your Social Security checks.
For the 5 other questions and answer visit www.comcast.net/finance/forwhatitsworth/145/socialsecuritymythsdebunked/
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