23 August 2007
To the Honorable Lloyd Doggett:
TAXABLE SOCIAL SECURITY: INCOME THRESHOLD LIMITS
This topic has been a concern for not only me, but many of my income tax clients receiving Social Security Benefits or soon will be.
In 1983 Congress legislated that up to 50% of Social Security could be taxed when combined income from all sources exceeded threshold limits. Surprisingly or not in 1993 the law was amended again allowing up to 85% of social security income to be taxed under certain conditions.
If you are single with income between $25,000 and $34,000 up to 50% of your social security is taxable. Income in excess of $34,000 results in 85% of your social security income subject to tax. Has not change since 1983.
For couples with income between $32,000 and $44,000 up to 50% of social security income is taxable. Income over $44,000 results in 85% of your social security income subject to tax. Has not changed since 1993.
Social Security increases its benefits to the recipient approximately 2.8% each year. Many receiving these benefits are finding they still need to work to accommodate the high cost of living. Others have invested toward their retirement allowing them a nest egg so they may be able to continue their way of life without having to work.
Social Security increases their benefits due to cost of living. Most employers do the same. Even annuities and retirement benefits my clients receive also increase each year. So why can't our government increase each year Taxable Social Security thresholds on our Federal Income Tax Returns?
I have been a member of "Write Your Congressmen" for several years and this topic has been on the top of my complaints and requests for me and my clients all these years. Nothing has come back to me showing any progress on this subject.
I am sure I can get thousands of signatures from other tax payers that share these concerns.
Your comments on this topic is welcomed. And positive action would be greatly appreciated.
Dorothy Perales
Write Your Representative
110th Congress, 1st Session
Washington, DC 20515 | (202) 224-3121 | TTY: (202) 225-1904
