Run Your Books, LLC’s Post

For 2024, the Social Security tax ceiling increased to $168,600, resulting in a maximum Social Security tax of $20,906 for high-earners. The Social Security Administration projects this ceiling to rise annually, reaching $242,700 or more by 2033. Additionally, the government adds a 2.9 percent Medicare tax to all wages and self-employment income, with an extra 0.9% for high-income earners. If you’re self-employed, these taxes can be particularly burdensome. Here are three strategies that can potentially reduce your tax liability: 1. Operate as an S corporation. This structure allows the corporation to pay you a reasonable salary and distribute the remaining profits to you, exempt from self-employment taxes. 2. Leverage community property rules. Married filers living in community property states can use IRS rules to eliminate or create a spouse partnership in order to reduce self-employment taxes. 3. Avoid the husband-wife partnership classification. With close attention to partnership attributes, you can avoid the husband-wife partnership classification and reduce overall self-employment taxes. If you need assistance implementing this within your organization or have other tax related questions, get in touch with us today!

The next time you think about retiring in another state... Ten States that Tax Social Security Source: RSSA Tax season officially begins next week on January 29th and it’s crucial to be aware that your Social Security income may be subject to both federal and state taxation. Referred to by some as the Social Security “stealth” tax, many individuals are unaware of this potential tax implication and fail to incorporate it into their financial planning. https://lnkd.in/e9Q3nHhJ

As a Social Security beneficiary, you’ll get bigger monthly checks this year because of the annual cost-of-living adjustment (COLA). What might come along with that increase? A tax bill. Find out why some will pay taxes on these benefits for the first time: https://bit.ly/42qhydC #SocialSecurity #taxes

As a Social Security beneficiary, you’ll get bigger monthly checks this year because of the annual cost-of-living adjustment (COLA). What might come along with that increase? A tax bill. Find out why some will pay taxes on these benefits for the first time: https://bit.ly/42qhydC #SocialSecurity #taxes 

As a Social Security beneficiary, you’ll get bigger monthly checks this year because of the annual cost-of-living adjustment (COLA). What might come along with that increase? A tax bill. Find out why some will pay taxes on these benefits for the first time: https://bit.ly/42qhydC #SocialSecurity #taxes 

As a Social Security beneficiary, you’ll get bigger monthly checks this year because of the annual cost-of-living adjustment (COLA). What might come along with that increase? A tax bill. Find out why some will pay taxes on these benefits for the first time: https://bit.ly/42qhydC #SocialSecurity #taxes 

As a Social Security beneficiary, you’ll get bigger monthly checks this year because of the annual cost-of-living adjustment (COLA). What might come along with that increase? A tax bill. Find out why some will pay taxes on these benefits for the first time: https://bit.ly/42qhydC #SocialSecurity #taxes

As a Social Security beneficiary, you’ll get bigger monthly checks this year because of the annual cost-of-living adjustment (COLA). What might come along with that increase? A tax bill. Find out why some will pay taxes on these benefits for the first time: https://bit.ly/42qhydC #SocialSecurity #taxes

As a Social Security beneficiary, you’ll get bigger monthly checks this year because of the annual cost-of-living adjustment (COLA). What might come along with that increase? A tax bill. Find out why some will pay taxes on these benefits for the first time: https://bit.ly/42qhydC #SocialSecurity #taxes

As a Social Security beneficiary, you’ll get bigger monthly checks this year because of the annual cost-of-living adjustment (COLA). What might come along with that increase? A tax bill. Find out why some will pay taxes on these benefits for the first time: https://bit.ly/42qhydC #SocialSecurity #taxes