November 23, 2020

Maximum Social Security Tax 2020

Maximum Social Security Tax 2020 most tax scams have one thing in common reporting too little of income but there's one scam I learned years ago from a revenue officer who was a friend of mine now that is retired, I can tell you about it not because I want you to do this oh it is most certainly a violation of, US law and could put you in prison for many years, if you get caught yet it's one of those things the government doesn't want you to know as it reveals a. Significant lack for control over something they pretend is well administered a lack of control. That is entirely foreseeable when you take something as complicated as US tax code and combine it with.

Our very expansive federal laws that it must interact with so now let's get to the scam now this is the one you're never gonna do okay but let's suppose you're 58 years old and. You haven't reported a lot of income your entire, career and you start thinking about your Social Security benefits you've got your most recent. Statement from the Social Security Administration and you see that your retirement looks like it's gonna be kind of low your future income looks both to.

Be both a very fixed and very low and this saddens you you want to. Get the maximum Social Security benefit but based on your contributions you will get the least now let us suppose that you know that if you contributed the, maximum for 40 quarters or 10 years that you know you would qualify for the maximum Social Security benefit and.

Now let us suppose you're both cavalier with the truth in your own freedom so you file ten years of tax returns, with a Schedule se filled out showing that you owe the maximum and self-employment tax and this is the key self-employment taxes are, where your Social Security taxes are calculated so now even though these ten returns show. A ton of income and a ton of tattoos yo you.

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