Tuesday, December 1, 2015

Social Security Disability Benefits and Taxes




At this time of year, the majority of American workers are getting ready to prepare their taxes. Their concentration is usually focused on how much they will have to pay, what can be deducted, or if they will get a refund. What is often overlooked is the income paid into Social Security and Medicare also known as Federal Insurance Contributions Act (FICA), or more importantly if it was paid. This deduction seems like an extra expense now but will be very important when you retire or if you become disabled.
On the standard W-2 form this information is found in boxes 3-5, wage earners should simply check to ensure that the deductions have been made. It is important to note that employers make matching contributions to FICA. If, however, you work for the Federal, State or local government and have a pension plan through your employer, FICA would not have been deducted. This is due to the Windfall Elimination Provision.
For those that receive a 1099, Federal income, Social Security, and Medicare is not withheld and the individual must pay these taxes on their own. Many people assume that they have paid sufficiently into Social Security because they paid their taxes but this is not always true. This is because those who receive 1099 do not have employer contributions into FICA and those who are self-employed only pay FICA on net income. Many small businesses or self-employed individuals run “In the red” (at a loss) for several years, and may take advantage of loopholes and deductions to avoid as much taxes as possible.
The best way to ensure you have sufficiently paid into Social Security is through a Social Security Statement. Some states mail this statement once a year, if you are not mailed a statement you can access it online atwww.socialsecurity.gov by creating a “my Social Security” account.
When you or your loved one have any questions or need help with your Social Security Disability Claim, you should seek the legal advice and representation of an experienced Highlands County Social Security Disability Attorney as soon as possible. The longer you wait to obtain legal representation, it may directly affect your ability to achieve a successful outcome. Contact the law offices ofLopez & Humpries, P.A. Today by calling (863) 709-1800.
We provide professional Social Security Disability Claims attorney & lawyer legal services in Lakeland, Winter Haven, Sebring, Bartow, and surrounding areas. We urge you to be proactive in protecting your legal rights.

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