Kamala Harris Has a Chance to Do Something Only 2% of Social Security Beneficiaries Have Ordered

In August, more than 68 million beneficiaries took home a check from America’s top retirement program, Social Security — and for many retirees, this is money they would struggle to live without. too.

Despite what you’ve heard from a friend or read on the Internet, Social Security benefits are not something you get by being born in the US or becoming an American citizen. Benefits, including those for retired workers, survivors and disabled workers, are often earned through employment.

To qualify for a Social Security payment, you’ll need to make 40 credits of lifetime employment, with no more than four credits earned in a given year. The amount of earnings (salary and salary, but not investment income) needed to qualify for the security quarter is $1,730 in 2024. So, $6,920 in wages and salary ($1,730 x 4) would increase the number of employment loans you receive. I can find them. this year.

Although Social Security was designed to help low-income earners throughout their lives and older workers in retirement, it is a program that ultimately provides benefits to those who have earned the necessary income for their entire 40s. — and that includes our elected officials.

Kamala Harris commented. Image source: White House Official Portrait by Lawrence Jackson.

Kamala Harris is nearing Social Security eligibility age

Current Vice President and Democratic Party presidential candidate Kamala Harris is one of the most eligible elected officials. in the end receive a monthly Social Security check. More than a week from now, on Oct. 20, Harris will celebrate his 60th birthday, which will make him two years shy of the first eligibility age (62) for claiming the benefits of retired workers.

Although 40 lifetime loans is the qualifying goal for all working Americans, the amount that Harris (or any worker for that matter) receives will depend on four factors:

A person’s work history and income are inextricably linked. When the Social Security Administration (SSA) calculates a worker’s monthly benefits, they factor in the 35 years of the highest earnings of the worker, adjusted for inflation. For each year worked less than 35, $0 is calculated.

Full retirement age refers to the age at which a pensioner is entitled to receive 100% of his monthly payment, and is determined by the year he was born. Anyone born in or after 1960, including presidential candidate Harris, has a retirement age of 67.

Finally, the age at which a worker claims his benefits affects how much he will receive. Although retired workers can begin collecting their income at age 62, America’s senior retirement program offers an incentive to persevere. Every year a worker waits to claim his benefits, starting at age 62 and continuing until age 69, his salary can increase by 8%, as shown in the table below.

Data source: Social Security Administration. Chart by author.

Kamala Harris has an opportunity to do something very unusual

While many employees are comfortable keeping their salary history private, it has been the unwritten rule for decades for presidential candidates and sitting presidents to publicly disclose their federal tax returns. (minus other personal details).

Recently, Vice President Harris unveiled 20 years of individual payments. His gross income (AGI) did not come in below $128,668 as a single filer. After Harris married Doug Emhoff and switched to filing taxes jointly with her husband, her AGI rose north of $1 million from 2014 to 2020.

The important thing about Harris’ 20 years of filing federal taxes is that he would have met or exceeded the maximum taxable income each year.

Social Security is largely funded through an income tax of 12.4% on earned income. In 2024, income tax is applied to income up to $168,600. This figure of $168,600 is the maximum amount of salary paid.

Social Security contributors who want to receive the maximum monthly Social Security benefits available in full-time retirement need to do three things:

• Work for at least 35 years.

• Wait until full retirement age to start collecting benefits.

• Meet or exceed the highest amount of taxable earnings in all 35 years that the SSA takes into account when calculating your benefits.

While we can’t find Harris’ career history before the last two decades, the data we have from the last 20 years suggests that Harris is on his way to the third point. He will also have no problem reaching the first working conditions for at least 35 years.

If Harris had waited until age 67 to claim his payment, he would likely have been able to receive the highest monthly payment from Social Security available for a full year of retirement. retirement. This is something only 2% of Social Security beneficiaries have achieved.

Image source: Getty Images.

An unpleasant Social Security surprise awaits Kamala Harris (and a growing number of retirees)

With a hefty Social Security check waiting for Harris in the years to come, there’s a big surprise. I’m talking about the dreaded “T” word…taxes.

YesSocial Security benefits can be taxed at the federal level, as well as in nine states, based on a temporary income — gross income + tax-free interest + 50% of Social Security benefits.

By 1983, Social Security’s resources were dwindling, and the program needed major reform to avoid potential benefit cuts. The Social Security Reforms of 1983, signed into law by President Ronald Reagan, represent the last major bipartisan reform of the program. It gradually increased payroll taxes on workers and raised the full retirement age over four decades. More importantly, it introduced a benefit tax as a revenue-raising tool.

Beginning in 1984, up to 50% of Social Security benefits may be subject to the federal tax rate if the temporary income exceeds $25,000 for a single filer and $32,000 for a married couple filing. In 1993, President Bill Clinton oversaw the addition of the second tax bracket. This section exempts up to 85% of Social Security benefits from federal taxes for single filers and joint filers whose temporary earnings exceed $34,000 and $44,000.

Here’s the facts: None of these currency rates have been adjusted for inflation since they were set 30 and 40 years ago. With annual cost-of-living adjustments (COLAs) payments increasing over the years, an increasing percentage of retirees are exposed to the benefits tax.

When Kamala Harris finally claimed her Social Security payment, there was up chances are you will owe federal taxes on the benefits you receive.

This tax is something that hits the current president, too. For the 2023 tax year, President Joe Biden and First Lady Dr. Jill Biden, who files their taxes jointly, had $54,616 of their $64,254 in Social Security benefits exposed to federal taxes.

Although the Social Security benefits tax is frowned upon by seniors, the money generated is very important, as America’s senior retirement program faces a $23.2 trillion (and growing) funding shortfall. in 2098. In other words, this hated tax is here. to stay.

The $22,924 The Social Security bonus is something many retirees completely ignore

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