Alan wrote:
- quote -

servers, or "wait staff", as the politically correct nomenclature
dictates these days.

ChEAr$,
Harlan Lunsford, EA n LA

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Harlan Lunsford wrote:
- quote -


--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Brew1 wrote:
- quote -


--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

In article <Watbl.4086$e13.3302[at]bignews5.bellsouth.net> ,
Harlan Lunsford <lunstax[at]bellsouth.net> wrote:
- quote -


As usual, the whisky mavEn is Absolutely correct.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Jan 14, 4:27*pm, Alan <sfcnm-...[at]yahoo.com> wrote:
- quote -

SSA uses wages shown in Box 3 of a W-2, which of course includes
compensation put into 401-K's etc. Box 1 of his W-2 might show
$13,560
but Box 3 will show $34,060. He will be locked into a lower benefit
for not
waiting, as well as have to pay back most of his benefits for that
year.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Phil Marti wrote:
- quote -

The amount that matters here, is Social Security earnings, reported on
W2 forms in box 3, as opposed to Taxable earnings in box 1 which is
derived by subtracting any permitted 401k contributions from the gross.

IOW, SSA don't give a .... whit.. about what's subject to income tax.

ChEAr$,
Harlan Lunsford, EA n LA

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

George Anthony wrote:
- quote -

What is the amount of earned income used by the SSA when they
make the determination as to whether the individual has exceeded
the maximum allowable amount? Is it the amount in Box 1 of the
W-2 or the amount in Box 1 plus any pre-tax contributions to a
retirement plan?

For an employee, the earnings test uses "wages." SSA defines
wages as the amount that is subject to social security tax. As
such, it would be the amount earned before any pre-tax
contribution to a retirement plan. Or in the case presented...
$34060.

By the way.. the limit for 2009 is $14160.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"mmurrell" wrote:

- quote -

I don't know who's correct. It's SS benefit law, not tax law. One thing I
do know for sure, though, is that the gross earnings will be reported to SSA
on the W-2. I'm inclined to think they'd go with that number.

But there's absolutely no reason not to just call SSA and find out for sure.
It's not like he's tipping them off to something they won't find out about
anyway.
--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"mmurrell" <mmurrell[at]cableone.net> wrote in message
news:f2cad276-61e4-4ff2-bcdd-6c7dcb3412db[at]w35g2000yqm.googlegroups.com...
- quote -

Check this site: http://www.ssa.gov/pubs/10069.html#count

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Hello to all,

I have a client that is nearing retirement. He is convinced he can
retire early (62), work and earn $34,060, and his benefits will not be
reduced. He determines this amount by the $20,500 that he would
contribute to his 401K, plus the $13,560 maximum earnings and still
receive full social secuity benefits.

I contend the $20,500 contributed to his 401K would count toward the
maximum earnings, and his benefits would be reduced by $1 for every $2
in earnings above the $13,560. ($20,500 /2 =$10,250 reduction). Am I
correct?

Thanks for any clarification you can provide.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >