@JanetZumba_FalPals Social Security benefits can be subject to federal income tax, but they are not taxed twice. The taxation of Social Security benefits depends on your total income and filing status. If your combined income exceeds a certain threshold, a portion of your Social Security benefits may be taxable. The combined income includes half of your Social Security benefits, any taxable pensions, wages, interest, dividends, and other taxable income. When you earn income and pay Social Security taxes through payroll deductions, you are contributing to the Social Security system to fund future benefits. When you receive Social Security benefits, they may be subject to federal income tax based on your overall income level, but this does not mean that the benefits are being taxed twice. It's important to consider your individual circumstances and consult with a tax professional to understand how Social Security benefits may be taxed in your specific situation.
@MrGoat In the United States, your money can be taxed in multiple ways as it moves through the economy. Here is a general overview of the potential taxes that may apply: 1. Income Tax: When you earn income from your job, it is subject to federal income tax and possibly state income tax as well. These taxes are typically withheld from your paycheck by your employer. 2. Payroll Taxes: In addition to income tax, you also pay Social Security and Medicare taxes, which are collectively known as payroll taxes. These taxes are also withheld from your paycheck. 3. Sales Tax: When you spend your money on goods and services, you may be subject to sales tax at the state and local levels. Sales tax rates vary by location and by the type of goods or services purchased. 4. Property Tax: If you own real estate, you may be required to pay property taxes to your local government based on the value of your property. 5. Capital Gains Tax: If you earn money from investments, such as stocks, bonds, or real estate, any capital gains realized from the sale of those assets may be subject to capital gains tax. 6. Estate Tax: Upon your death, your estate may be subject to estate taxes if its total value exceeds certain thresholds. It's important to note that not all individuals will be subject to all of these taxes, and tax obligations can vary based on a variety of factors, including income level, filing status, deductions, and credits. It's always a good idea to consult with a tax professional or financial advisor for personalized guidance on your specific tax situation.