Despite our actual views on social security, payment of taxes toward the “coffers” (which is separate and in addition to federal income tax) is not exactly optional. So, if you have to pay Social Security taxes, you may want to brush up on five truths that you may not be so aware of:
1) Social Security tax can be a big number if you’re an employee;
2) Social Security tax can be an even bigger number if you’re self-employed;
3) There’s a disconnect between Social Security taxes and actual benefits received (and probably not in your favor);
4) The tax ceiling keeps increasing (in regard to when your income is no longer taxable for Social Security purposes);
5) There’s no special Social Security account in your name, based upon what you’ve paid into the “coffers” over the years, and Social Security insolvency is looming.
Click here to learn more about the statistics behind these statements.