AboutCarole Dunton Expertise Preparation of individual income tax returns including social security, pensions, lump sum distributions, sale of personal residence, stock and mutual fund sales, distributions from individual retirement accounts, moving expenses and itemized deductions.
General knowledge of schedule C for small sole proprietorships.
No experience in corporate, estate, partnership or large business returns.
Experience 8 years as tax preparer for major national firm.
Expert: Carole Dunton Date: 7/8/2008 Subject: Social Security
Question I read your answer to a question about a retired person working part-time and having taxes withheld from their pay. I understand the income tax, but why does this person who is receiving Social Security benefits from the government have to have social security taxes deducted from their pay? Another questions. The amount that a person earns and pays Social Security tax on before they retire determines how much their Social Security benefits will be. Does paying Social Security tax on income earned after one retires and receives Social Security benefits effect the amount of their Social Security benefits?
Answer Hi,
The law requires that employees and their employers pay social security and medicare tax even though an employee is already receiving social security benefits. But the good news is that these additional payments can increase your social security benefits. The SSA is supposed to automatically recalculate the benefits annually but individuals have told me that you have to ask. I don't know for sure that the individuals are correct but it couldn't hurt to ask.
