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dylatess, ATTORNEY
Category: Social Security
Satisfied Customers: 3441
Experience:  37 plus years of SSD practice
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Why do I pay irs taxes on my social secutity when I paid

Customer Question

Why do I pay irs taxes on my social secutity when I paid taxes on it when I deposited it in my pay role taxes?
Submitted: 1 year ago.
Category: Social Security
Expert:  emc011075 replied 1 year ago.

Hi. My name is ***** ***** I will be happy to help you.

Social security benefits are type of insurance payout. You pay premiums while you work (payroll withholding) and once you retire and qualify for the benefits you get the payout. Social security withheld from your paycheck is not deposited into a special account with your your social security number. It is deposited into a government trust fund that is used to pay benefits to the current benefits recipients. Your benefits are paid by the current workers's withholdings. Your benefits are not a refund of your withholdings.

Social security income is only taxable if your other income is over certain threshold. So it is up to you if and how much of it will be taxable. Unlike your 401K or IRA, social security income is a benefit (not your personal savings account) and as such it comes with rules and one of the rules is that up to 85% of your benefits could be taxable if you also have other income.

Withholdings are premiums, not contributions.

Customer: replied 1 year ago.
How come illegal aliens can draw sosial security and myself who paid taxes while working as payrole with holdings and now when I want to draw benifits I have to pay income tax again?
Expert:  emc011075 replied 1 year ago.

To receive social security benefits you need to have social security number and to get social security number LEGALLY you have to be legal in the country. Which means illegal aliens are not entitled to any benefits and if they collect any benefits than they must be using somebody else's social security number. Which is entirely different issue. Regardless what some politicians claim, you cannot get social security benefits legally if you are illegal alien.