Debt limit deal is in place, but budget deficit is still a multi-decade challenge for US government
Even with new spending restraints included in the congressional debt limit deal, the U.S. government’s deficits are still on course to keep climbing to record levels over the next few decades.
Go-broke dates pushed back for Social Security, Medicare
A stronger-than-expected economic recovery from the pandemic has pushed back the go-broke dates for Social Security and Medicare, but officials warn that the current economic turbulence is putting additional pressures on the bedrock retirement programs.
Retiree checks to rise 1.3% in 2021 amid coronavirus fallout
WASHINGTON – Social Security recipients will get a modest 1.3% cost-of living-increase in 2021, but that might be small comfort amid worries about the coronavirus and its consequences for older people. The economic fallout from the virus has reduced tax collections for Social Security and Medicare, likely worsening their long-term financial condition. The former vice president would raise Social Security taxes by applying the payroll tax to earnings above $400,000 a year. That amount generally increases, so at least some of any additional Social Security raise goes to health care premiums. That prompted Congress to pass recent election-year legislation that limits next year’s premium increase but gradually collects the full amount later on under a repayment mechanism.
Former Beauty Queen Says She Did Not Steal Dying Mom's Social Security Checks to Pay for Lavish Lifestyle
The former Mrs. Florida is scheduled to trade her evening gown for a prison jumpsuit after pleading guilty to stealing her mother's Social Security checks, prosecutors say, to help fund her opulent lifestyle. Turk pleaded guilty to misdemeanor social security fraud and was sentenced to one month behind bars. The Social Security checks were supposed to pay the nursing home where her mom lived. But Turk says she refused to pay the nursing home bills because the facility neglected her mother, she says. Turk says she used the money to pay for private nurses to take care of her mother around the clock.
Social Security & Tax Breaks
Figuring out what you owe can be complicated, here is some information to understand what is taxable under Social Security. Social Security is taxable at three different levels, based upon how much other income you have and your income tax filing status. This is 50% of your household Social Security benefits plus all of your other taxable income, plus any tax-free income. These breakpoints are the same if your filing status is Married Filing Separately and the couple does not live together during the tax year. If your Provisional Income (defined above) is less than the first breakpoint based on your filing status, then none of your Social Security is taxable.