Some 30 million, over 65, low-income Social Security recipients still pay federal income taxes. Hang onto your hats, our taxes are probably going up!
We hear of proposals for tax cuts for corporations, the wealthy (alternative minimum tax) and even middle-class families in the $50,000 to $150,000 income range but no mention of low-income seniors.
What makes SSA benefits taxable is other income. Other income from hard-earned taxable pensions; current wages (return to the workforce to meet living expenses) or withdrawals from a taxable 401(k). These 30 million have an adjusted gross income between $40,000-$50,000.
Let’s put that range in perspective with a few facts:
The median income in Washington state for 2017 is $68,277 for two people; and $56,432 for a single person.
Today 9 million senior citizens work. The fastest growth rate to return to work than any other age group.
Social Security benefits have lost one-third of their purchasing power since 2000. Cost-of-living adjustments increased SSI benefits by 43 percent since 2000 but typical senior expenses increased by 86 percent.
Tax proposals will negatively affect the over-65 group, including:
The elimination of the lowest tax rate of 10%.
The elimination of personal exemption deduction.
Standard deductions “increase” to $24,000 for married filing joint and only $12,000 for a single. This might look at an increase but look again. In 2016, married filing joint over 65, the standard deduction was $15,100. Add the elimination of personal exemption, $8,100 for a total reduction to taxable income was $23,100 and now only $24,000 is proposed.
Another proposed change is the elimination of general sales tax deduction which was about $875 (plus sales tax on capital improvements) for this income range.
So to all our Congress representatives, we, 30 million Americans, who earned our Social Security benefits and pensions; paid taxes and supported America for the last 50 years, need your support now.