Quote:
Originally Posted by Andyb
Capital gains is the killer. Not to mention tax on Social Security, which has already been taxed. Seems if your middle class, you get screwed the worst.
The tax system and the IRS need a major overhaul.
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One of the most misunderstood concepts is that you have been taxed on social security already,
I looked up my account on SSA.gov and found I had paid in slightly over $100,000 through last year in social security tax (non-deductible) over the last 65 years . That's including the fact that I have paid in social security on wages I paid myself since age 70.
I've gotten no return on the social security I've paid in since age 70 since it hasn't increased my benefit.
In return I've gotten back over $400,000 in social security, And every year I get back more. It's like a non-deductible IRA. I get taxed on the earnings - not what I put in. The longer I live the better the return.