Quote:
Originally Posted by spike III
I don't know about where you live. But We have to pay Federal tax on are SSI plus Medicare. That stupid Cost of living percentage they might give you for increase on SSI if they feel like it is a big Farce.
Just say you get a 3% increase on your SSI. They will take Fed Tax plus medicare out of your increase.
So what it leaves you from the increase is basically enough increase to buy 1 piece of toilet paper. Try not to use it all at once.
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You pay taxes on your SSI and your pension and other retirement plans, like a 401K, because you didn't pay taxes when you earned that money.
Theoretically, you will be in a lower tax bracket when you begin to withdraw the funds so the tax won't be as much as when you earned it.
And for SSI, last year I was taxed on ~62% of what I collected. Since I have money withheld every month I received a refund. That may depend on your total income though.
They don't take money for your Medicare, they take money for any supplemental plan. If you join a Medicare Advantage plan they deduct for that. You can refuse the supplemental insurance if you wish, but if you join a plan later in your life the cost will be higher than joining ASAP.
There are a lot of doctors who won't accept Medicare patients but will accept patients with an Advantage plan. And you will probably never pay a deductible.