Is Social Security taxable?

Social security is taxable under certain circumstances. These circumstances depend on both an individual’s annual yearly income and his or her marital status. Generally, if Social Security benefits are the only source of income, the benefits will not be taxable.

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Are Social Security Payments Safe from Collection by Creditors?

While a creditor cannot garnish a social security check, if the check is directly deposited into a checking account, and a creditor seizes that account, all money in it, up to the amount that will satisfy the judgment, can be taken. A seized account is ‘frozen.’ This means, the debtor cannot withdraw any money from the account. After a set period of time, typically 60-90 days, the money is paid to the creditor.

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Social Security Tax

Social security tax and social security benefits are part of the system where working individuals pay into the social security system in order to receive payments during retirement or other periods when they cannot work. Most working people split the costs of social security with their employers. The self-employed also pay social security tax. Many people recognize this tax as the’FICA’ line on their pay stub. This stands for the’Federal Insurance Contributions Act’ and the Social Security and Medicare taxes levied under it are used to fund the Social Security system.

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