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Old 07-17-2017, 06:13 AM
 
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If you have a public pension earned from income not subject to SS taxation, you will be branded as a double-dipper and will as the result stand to lose a significant portion of your own SS benefits otherwise earned from covered, usually private-sector employment as the result, and also of the right to such benefits as you might have been eligible to participate in through the SS record of a spouse. For nearly three-quarters of those facing such offsets, the offset is large enough to eliminate SS benefits entirely.

Last edited by Pub-911; 07-17-2017 at 06:35 AM..
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Old 07-18-2017, 04:03 PM
 
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Quote:
Originally Posted by Pub-911 View Post
If you have a public pension earned from income not subject to SS taxation, you will be branded as a double-dipper and will as the result stand to lose a significant portion of your own SS benefits otherwise earned from covered, usually private-sector employment as the result, and also of the right to such benefits as you might have been eligible to participate in through the SS record of a spouse. For nearly three-quarters of those facing such offsets, the offset is large enough to eliminate SS benefits entirely.
If you don't want to fall under the windfall elimination provision you can pay into social security as well. Not that the op asked about it and pension plans have long been going the way of the dodo unfortunately.
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Old 07-19-2017, 05:31 AM
 
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And people who don't have a pension seem to be mad at the people who do. Makes no sense.

Otherwise, an ability to pay into SS from a non-covered public sector position has not been common. You just lose the SS benefits that your private sector payroll taxes had already paid for. That makes no sense either.
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Old 07-19-2017, 10:18 AM
 
Location: Close to an earthquake
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Withholding or quarterly estimated tax payments are nothing more than payments; they're not the calculation of your tax. I sometimes hear clients say that they've paid the tax on an IRA distribution because tax was withheld. This withheld amount for certain individuals is often insufficient, particularly if it's a premature IRA distribution subject to early withdrawal penalties.
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Old 07-19-2017, 10:57 AM
 
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The account manager should raise the question in any case, but the account owner ultimately decides what percentage of an RMD or other IRA distribution should be withheld. Like any withholding, these are essentially prepayments against a yet-to-be-determined final tax liability for the year. Additional taxes may be owed (or a refund due) based upon those final calculations.
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Old 07-19-2017, 02:43 PM
 
2,138 posts, read 1,150,540 times
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Originally Posted by Pub-911 View Post
And people who don't have a pension seem to be mad at the people who do. Makes no sense.

Otherwise, an ability to pay into SS from a non-covered public sector position has not been common. You just lose the SS benefits that your private sector payroll taxes had already paid for. That makes no sense either.
That isn't true. The only reason pension people get less social security is because of WEP or not paying in (double dip pensions). If you fall outside of that you get just as much as everyone else per your contribution. The idea that your taxes get"lost" is ....

You lose nothing by having a pension on its own, you only lose because your missed 20 years of paying in which you can resolve yourself if you'd like. Part time business, pay your fica to the minimum which is low and get your credit. At least then you'll get full credit so your already lower benefit doesn't see a 50% cut.

No different than the guy that didn't pay in for 20 years because of any reason. The pension isn't the culprit, not paying into the system is the problem. Which you can fix with a little creativity regardless if they'll withhold or not at the company level.

Now if you double dip pensions there is no reason to do this but if you pay into social security for 20 years and have 20 in a pension is should be something to consider because WEP is going to ....bad.

Last edited by toosie; 07-19-2017 at 07:09 PM.. Reason: Deleted inappropriate language
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Old 07-19-2017, 03:30 PM
 
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Originally Posted by aridon View Post
That isn't true. The only reason pension people get less social security is because of WEP or not paying in (double dip pensions). If you fall outside of that you get just as much as everyone else per your contribution. The idea that your taxes get"lost" is ...
It's a simple fact for millions. Taxes paid in, but no benefits paid out.

Last edited by toosie; 07-19-2017 at 07:10 PM.. Reason: Deleted inappropriate language from quoted post
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Old 07-19-2017, 03:43 PM
 
Location: Myrtle Creek, Oregon
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Originally Posted by aridon View Post
There is no double dipping, saying that make it seem like you can't do simple math. Go look up the tax tables and credits and figure it out.

People on average actually pay very little in Federal income taxes. There is no double dipping
Yes, there is double dipping. You pay FICA, and you pay income tax on FICA, so you pay tax on tax.
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Old 07-20-2017, 07:44 AM
 
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Originally Posted by Larry Caldwell View Post
Yes, there is double dipping. You pay FICA, and you pay income tax on FICA, so you pay tax on tax.

And pretty soon we may be paying taxes on state taxes too.
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Old 07-20-2017, 08:16 AM
 
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There is nothing to preclude "double taxation." It goes on all the time. But the thread was about "double-dipping," which is actually something else.
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