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Elderly taxes went up

Published by in tax increase ·
Tags: taxincreaseforelderly
July 31, 2019, If you receive social security, your taxes may have gone up

Many people are receiving social securty based on wages received in the sixties and seventies. In the sixties, minimum wages were about a dollar an hour. In the sixties I made forty dollars a week, ten went for insurance, social security, and taxes. Ten went to my parents for my room and board. Ten went in savings and I lived very modestly on the ten that was left.

My social security income is about five hundred a month. After deductions, I receive $315. But I never paid income tax on my modest social income until this year. In fact, I got a deduction.

In the past, people born before a certain date (1953 for the previous tax year) received an extra deduction because their social security was, for the average person, very, very modest. This year, on the tax form (top of page 2 of 1040), we were told while we will not be taxed on our social securty, they wanted to know how much it was in order to determine our deductions. Because I receive $6,000 ($3,780 after deductions) a year in social security, I no longer qualify for this $6,350 deduction that in the past was supposed to help the people who earned most of their tax credits in the sixties and seventies when wages were so low. So I paid $900 more in taxes. Now, how is this not taxing me on my social security, which now is $3,780 minus $900 in taxes or the glorious amount of $2,880 after all deductions.

I am not sure that is even legal. But, the government does have to make up for all the taxes the rich no longer pay so why not raise taxes on the people with the least resources. Although, the middle class is also suffering.

Fortunately for me, social security is only one of my incomes and the smallest.  For some people, this will be devastating. Especially if they have large medical bills as people on social security often have.

I am still stunned that this has happened. Am I the only one that has noticed? Go to the IRS forms page and look up the 1040 tax form for 2017 at the top of the back page and you will see where people born before 1953 get the deduction. Then look at the 2018 1040 and you will see where it states, “ you will not be taxed on your social security but we need the amount inorder to figure your deduction".  And then you are informed you get no deductions.


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