Comment on Social Security can be saved. Scrap the cap!
gartheom@lemmy.world 2 weeks agoAnybody making more than the cap still pays the tax. The cap just means as far as social security is concerned, you only are taxed and provided benefits as though you earned $184k.
musicalphysics@discuss.online 2 weeks ago
Go through the irs form here, page 9. Self employed folks making more than the max put in 0 for SS. www.irs.gov/pub/irs-pdf/f1040es.pdf
DrPop@lemmy.world 2 weeks ago
That’s the instructions for the 1040#es a voluntary form where you estimate you taxes you will owe and make quarterly payments. www.irs.gov/pub/irs-pdf/f1040sse.pdf look at line 8a of this form.
musicalphysics@discuss.online 2 weeks ago
Yep. It also shows if you are making above the SS limit then people don’t have to contribute to SS.
Rivalarrival@lemmy.today 2 weeks ago
That form does not calculate social security tax. It calculates an estimated self employment tax. None of the numbers on that page are the amount of tax owed in social security. Lines 5-9 are calculating how much additional tax you can deduct because you are paying social security tax on the first 184.5K of your income. When your income exceeds 184.5k, you are not paying additional social security tax, so you are not entitled to a greater deduction against your self-employment tax.
musicalphysics@discuss.online 2 weeks ago
Everything you say is dishonest. It is in fact a form for calculating social security tax. Do you think the IRS is going to leave payroll taxes out?
Rivalarrival@lemmy.today 2 weeks ago
What is the title of the form? Right up at the top of the page, it has a title. What is that title?
GreyEyedGhost@piefed.ca 2 weeks ago
The qualifier you put under here, which is not in your original comment, is if you’re self-employed. What if you aren’t? (Let’s ignore the question of if you should be at that i come.)
musicalphysics@discuss.online 2 weeks ago
It is a qualifier. The tax code doesn’t exactly make sense but I’d expect if self-employed doesn’t have to contribute why would an employee. Self employed people have to pay both the employer and employee portion, while employees only pay to employee part.
GreyEyedGhost@piefed.ca 2 weeks ago
Okay, so you’re talking about something where you have the bare minimum of knowledge. That’s cool, this is the i telnet after all. Not being an American, I haven’t spent a lot of time reading their tax laws or forms. I dont know if that applies to you. But I try to be more informed if I’m going to argue on the internet, and it appears SS is a marginal tax just like many others. In this case, it’s a flat tax up to $184.5k this year, and 0 for income above that amount. So your initial point was also wrong.