Will Social Security run out?

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asked Jun 25, 2022 in Other-Finance by makethat3 (480 points)
Will Social Security run out?

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answered Jun 25, 2022 by 7maxwarren (12,510 points)
Social Security is thought that it's gonna run out eventually but as long as people are paying income into the social security the social security is likely to never actually run out.

Still it's a good idea to have your own retirement savings to carry you through your retirement.

When the husband dies the wife does most often get the husbands social security or at least a percentage of it.

A wife does get the husbands social security after the husband dies.

A surviving spouse can collect 100 percent of the late spouse's benefit if the survivor has reached full retirement age, but the amount will be lower if the deceased spouse claimed benefits before he or she reached full retirement age.

When a retired spouse dies, the surviving spouse gets an amount equal to the spouse's full retirement benefit.

Example: John Wagner has a $1,200.00-a-month retirement benefit.

His wife Jane Wagner gets $600.00 as a 50 percent spousal benefit.

Total family income from Social Security is $1,800 a month.

A 70 year old and above can earn an unlimited about of money or income while on social security.

You can earn any amount and not be affected by the Social Security earnings test once you reach full retirement age, or FRA.

That's 66 and 2 months if you were born in 1955, 66 and 4 months for people born in 1956, and gradually increasing to 67 for people born in 1960 and later.

A 70 year old can earn as much as $14,250.00 per year before they are required to file and pay taxes on the income.

Those who are 65 years of age and older can earn up to $14,250.00 per year before they are required to file income tax.

A 70 year old does have to file taxes if they are working and are earning an income.

No matter your age as long as you're working and earning money and are not just on SSI or Disability payments then you must file taxes on your earned income.

If however you're not working then you don't have to file taxes if you only get SSI or Disability payments.

Typically unmarried seniors will typically need to file a return if: you are at least 65 years of age, and. your gross income is $14,250 or more.

If your gross income is less than the amount shown below, you're off the hook! You are not required to file a tax return with the IRS.

But remember, if Federal taxes were withheld from your earnings, you'll want to file a tax return to get any withholdings back.

Failure to file taxes when required can result in penalties in a 5 percent penalty each month on any unpaid taxes, capping at 25 percent.

Here is how it breaks down: First month: 5 percent of tax liability.

Second month: 5 percent of tax liability, plus a penalty of $210 or 100 percent of your tax liability, whichever is less.

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