Taxable Social Security income There are few items on a tax return that are more confusing or more difficult to explain to taxpayers than that of taxable Social Security. Prior to the late 1980s, Social Security was not taxable. Tax-free income is the best deaa still too good of a deal, because the law was changed to tax up to 85% of gross benefits received. It seems like the logic in taxing benefits was that this would help extend the time when the Social Security system would go bankrupt. One never knows for sure when trying to figure out where federal tax money ends up, but I find it hard to believe that any of the tax dollars due to taxable Social Security tax end up at the Social Security Administration. I think that big black hole in Washington just sucks up those dollars. I wouldn’t be surprised that at some point in time, 100% of benefits will become taxable just like a distribution from any pension. The fly in the ointment is that today everyone pays into Social Security. These payments made at the rate of 6.2% of earnings are not voluntary. Granted, employers pay in another 6.2% matching contribution, but employers get to deduct this amount on their tax return. The 6.2% each taxpayer pays represents a nondeductible cost to that taxpayer. Taxpayers should be able to recover the amounts they paid in to the Social Security system using one of two options: either the taxpayer would be able to recover his cost as a nontaxable amount received each year over his life, or he would be able to recover his cost in total from the first benefits received before any benefits become taxable. Either approach has tax theory behind it, but there is a larger book of theory that would require taxpayers to recover their cost over their life. The Social Security system keeps track of how much tax is paid in to the system by each taxpayer. Up to now, it’s just kept for statistical reasons, because benefits are calculated on earnings, not taxes paid in. But it would not take much of a software program to calculate the taxable benefit based on recovering the taxes paid in. I hope […]
March 4 2010
Fifteen years after the first event, Rockford Public School students have jumped a lot of jumps and raised a lot of money and awareness for the American Heart Association. Saturday, February 27, the gymnasium of the Rockford High School was packed with third, fourth and fifth grade students jumping for this good cause. The event is organized by Tim Farrell, Parkside Elementary physical education teacher. Kids worked up a sweat on this cold winter day and each participant received a door prize. In addition students competed for medals and bragging rights. Open Jumping for adults was held for parents who wanted to get in on the fun and exercise. The children did a wonderful job with this annual event and displayed great sportsmanship.
7th Shannon Ainsworth, Wolf Dittmer, Jack Larson, Shayla Thomas, Alice VanLuinen 8th Kelsi Briggs, Jack Maher, Tracy Thornsberry 9th Pete Baer, Pat Palmer 10th Jack Andrews, Brandi Haik, Irene Nelson, Betty Sharpe 11th Clayton Andrews, Eric Nelson, Willie Bradley 12th Chris Bearinger, Laura Corstange, Evelyn May
This year the students at Lakes Elementary School have been working on a new concept: bucket-filling. “Bucket fillers” are those who help without being asked, give hugs and compliments, and generally spread their love and good feelings to others. In contrast, “bucket dippers” rob us of happy feelings by refusing to help with a task or by saying or doing unkind things. This past Valentine’s Day, Feb. 14, Mrs. Jenks’ third-grade class decided to be bucket fillers by warming the hearts of others in our community. The children made fleece blankets that were donated to North Kent Service Center.
Thursday, March 4 Rockford Area Historical Society Meeting—7 p.m. at the Community Cabin, 220 N. Monroe St., Rockford. Guest speakers will be Eleanor Palmer and Stan Hone of Rockford Lions Club on the history of the Lions. Fri.–Sat., March 5–6 Auditions for “Hamlet & Eggs”—Friday from 6:30 to 3:30 p.m., and Saturday, from 10 a.m. to noon, at Cedar Springs United Methodist Church, 140 S. Main St., Cedar Springs. Practice for this play will begin April 5; performances on May 20-23. Roles include four men and five women of various ages. For more information, call Scott Phillips at (616) 696-3746. Fri.–Mon., March 5–8 Spectacular Book Sale—Plainfield Township Branch, 2650 Five Mile Rd., Grand Rapids, from 10 a.m. to 4 p.m. on Friday and Saturday, 1 to 4 p.m. on Sunday, and 10 a.m. to 2 p.m. on Monday. Hardcovers $1, softcovers 50¢, and paperbacks and children’s books only 25¢… used books at bargain prices! For more information, call the library at (616) 784-2007. Saturday, March 6 2nd Annual Bands on the Grand Festival—9 a.m. to 5 p.m. at Forest Hills Eastern High School Auditorium, 2200 Pettis Ave. NE, Ada, sponsored by Forest Hills Adult Community Band. Admission is free. For more information, call (616) 493-8830. Halo 3 Tournament—team registration at 9:30 a.m. (limited number of teams), at St. Peter’s Lutheran Church, 310 E. Division, Rockford, to raise funds in support of the senior high mission trip to Beaver Falls, Penn. For more information or parent consent forms, visit www.stpetersrockford.org, or call (616) 866-1818. Sunday, March 7 Swiss Steak Dinner—noon to 1:30 p.m. at the Rockford Masonic Lodge. Cost is $8 for adults; $3 for children under age 10. Dinner includes Swiss steak, vegetable, mashed potatoes with gravy, salad, dinner roll, dessert and beverage. Adults receive $1 off with the donation of one or more cans of food in support of the North Kent Service Center. Monday, March 8 Free Tofu Cooking Class—7 p.m. at North Kent Bible Church, 7210 Courtland Drive, Rockford, sponsored by Three Angels Fellowship Church. Enjoy a demonstration, recipes and samples. To register, call Amy Ortego at (616) 874-7499. Tuesday, March 9 American Sewing Guild Meeting—Plainfield Senior Center, 5255 Grand River Drive, Grand Rapids. Bill Voetberg will present “Kickin’ It Up a Notch—Let […]