Is it too early to know? If someone makes just over the threshold, I'm thinking it could be very frustrating.
Tax Experts - If one makes just over $100k, can they change withholding to qualify for deferral?..
- Thread starter ColoradoTiger97
- Start date
Great question. Because the benefit is a % of income, I’d be surprised if they included a phase out here.
If you’re really that close, I’d ask for a decrease in pay.
If you’re really that close, I’d ask for a decrease in pay.
Or you could just work harder, create new ideas, and make more.
But that’s just me.
1. Changing withholding does not change income.
2. Ignoring the fact that this executive order is likely unconstitutional, it has to be paid back. Trump claims he will make it permanent if he is re-elected, but he cannot do it unilaterally.
2. Ignoring the fact that this executive order is likely unconstitutional, it has to be paid back. Trump claims he will make it permanent if he is re-elected, but he cannot do it unilaterally.
Why would you ask for a pay reduction to get a 5 month loan?
I don’t think he said make it permanent?I thought I heard him say more tax breaks were coming if re-elected.
I wounder if the rule is before or after 401K deductions.
If after you can always increase to the max level. ( about 18K)
It seems like the order still lacks some details.
I would suspect a different kind of agreement will be made before this could actually be rolled out.
I don't believe this is an overnight change at most companies.
If you can raise an lower the 401K to get around it you may be able to raise it this year and than lower in Jan if you actually get hit with a tax bill.
We'll see what the actual instruction are sent to employers. I suspect something will happen in Congress in the next 3 weeks.
Right now, it sounds like call someone's bluff in poker.
It will be interesting.
Tax Deferrals
Trump said his action authorizes the U.S. Treasury to allow companies to defer -- not suspend -- payroll taxes for Americans making less than $100,000 a year from Sept. 1 through Dec. 31. He said if he’s re-elected in November, he may extend the deferral and terminate the tax for some workers.
If after you can always increase to the max level. ( about 18K)
It seems like the order still lacks some details.
I would suspect a different kind of agreement will be made before this could actually be rolled out.
I don't believe this is an overnight change at most companies.
If you can raise an lower the 401K to get around it you may be able to raise it this year and than lower in Jan if you actually get hit with a tax bill.
We'll see what the actual instruction are sent to employers. I suspect something will happen in Congress in the next 3 weeks.
Right now, it sounds like call someone's bluff in poker.
It will be interesting.
Tax Deferrals
Trump said his action authorizes the U.S. Treasury to allow companies to defer -- not suspend -- payroll taxes for Americans making less than $100,000 a year from Sept. 1 through Dec. 31. He said if he’s re-elected in November, he may extend the deferral and terminate the tax for some workers.
he said he would make the payroll tax permanent if re-elected. Not a smart thing to say, since the revenue from that tax funds social security and Medicare. He just told old people that he is going to defund those programs.
The deferral is available if wages or compensation are below $4,000 during an applicable bi-weekly pay period. I suspect the deferral will be based on bi-weekly social security base wages, which do not change based on 401K deductions, but that is not explicitly clear.
The order lacks signficant details.
What is inaccurate about what I wrote? Good lord man. Educate yourself.
You’re using an angle. You’re fully aware the funding for SS and Medicare will continue. You sound like Sean Hannity.
Nice try.
Not necessarily accurate. Depends on the details. It’s a biweekly or monthly benefit which likely means it’ll be attached to the biweekly or monthly income.
where do you think all this magical money to fund these programs is going to come from? Given that we are currently running almost a trillion dollar a month deficit under the current administration, I don’t think borrowing more is the answer.
OP.....have to wait for details to make decisions and they are not out yet.
Sad but both parties are saying things to get elected right now and Trumps as well . Realize that happens every 4 years but is much worse now.
Sad but both parties are saying things to get elected right now and Trumps as well . Realize that happens every 4 years but is much worse now.
People who already pay too much income tax will have to pay more, and by and large these people are not the same folks who receive these gifts.
A study done in 2018 by the DHH showed that Obamacare had actually saved the US $2.3 trillion in healthcare costs. That of course did not stop Trump from continuing his mission to dismantle it piece by piece. But I'm not worried, Trump said three weeks ago that he would introduce his new healthcare plan in two weeks.... oh wait.
https://www.healthaffairs.org/doi/10.1377/hlthaff.2018.05085
It is going to be interesting to see what Biden will do with the expanded executive action power that Trump now has.
except that Biden has repeatedly called for additional funding for police. much to the chagrin of the left.
from FOX NEWS:
Wallace: The White House never sent us evidence the Bernie-Biden platform calls for defunding or abolishing police — because there is none. It calls for increased funding for police departments–that meet certain standards. Biden has called for redirecting some police funding for related programs—like mental health counseling.
Oh, and I suppose I should look to David Duke to see what trump will do next term?
Jesus...
if not made permanent, deferral will result in it being due at tax time. Seems like an election year gimmick. If he really wants to do this or any other real tax break, he needs to bargain for it and make it a law that will not result in taxpayers owing a “huge” payment after the election. An EO isn’t a solution to tax or unemployment issues, it’s a media op with long term consequence, it’s just a question of how far into the future he can push the invoice.
Whether you are conservative or liberal, something has to change with Social Security at some point or its going to run out of money. Raise the age, increase the % withholding, raise the cap, decrease the benefit, whatever. Neither party has had the balls to address it but it’s got to happen at some point.
You don’t think Biden is just a figurehead for Pelosi & the squad? Not trying to be funny but that man can’t hardly finish a paragraph at this juncture. I thought this was pretty common knowledge even to left wing people.
