Car Repos on the Rise

[sk47]

Not to side rail this thread even further but why is your SS check getting taxed because of your pension? Here in IL, teachers and others that have pensions still get the full amount of SS because pensions are not counted as "taxable" income that would lower your SS benefits. Is this not the same in TN? I personally know 2 teachers collecting their pensions and getting 2k a month for SS on top of their pensions.

Hello; The SS benefits are taxed by the feds. I fill out a complicated form to see if my SS is taxable. In the end my state pension causes me to make too much so a portion of the SS benefit is taxed. Neither the state of KY nor TN ever taxed my SS benefits. KY because i moved out of state before I turned 65. TN does not have a state income tax.

In an ironic way the tax is not so much since they have reduced the SS payments to begin with. The excuse is because I taught in public schools in KY and they did not cut ant SS payments from my teachers pay. I lived in KY most of my life, only moving to TN 12 years ago. I found a place about five miles from my hometown in KY.
That might make sense except I had several other jobs over the decades from which I did pay into SS each pay period. Driving a school bus, working log woods, teaching in TN and NC after I retired in KY, installing carpet, managing a drive-in movie theater to name those I can recall. I did know exactly how much the SS payout is cut but will guess today it is close to 2/3rds of what I would draw just based on the quarters I earned. Had I never done any jobs outside of teaching in KY it would make sense.

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[04mazdaspeed]

Hello; The SS benefits are taxed by the feds. I fill out a complicated form to see if my SS is taxable. In the end my state pension causes me to make too much so a portion of the SS benefit is taxed. Neither the state of KY nor TN ever taxed my SS benefits. KY because i moved out of state before I turned 65. TN does not have a state income tax.

In an ironic way the tax is not so much since they have reduced the SS payments to begin with. The excuse is because I taught in public schools in KY and they did not cut ant SS payments from my teachers pay. I lived in KY most of my life, only moving to TN 12 years ago. I found a place about five miles from my hometown in KY.
That might make sense except I had several other jobs over the decades from which I did pay into SS each pay period. Driving a school bus, working log woods, teaching in TN and NC after I retired in KY, installing carpet, managing a drive-in movie theater to name those I can recall. I did know exactly how much the SS payout is cut but will guess today it is close to 2/3rds of what I would draw just based on the quarters I earned. Had I never done any jobs outside of teaching in KY it would make sense.

Ah, so you did other work while collecting SS? That makes sense then. Then yea, SS gets cut because you have "other" income coming in and not at full retirement age. I was gonna say, pension income is not deemed "income" as far as when it comes time to collecting SS whether its at early retirement age or later. Granted, you will have more taxes to pay for sure though..lol

 

[sk47]

Ah, so you did other work while collecting SS? That makes sense then. Then yea, SS gets cut because you have "other" income coming in and not at full retirement age. I was gonna say, pension income is not deemed "income" as far as when it comes time to collecting SS whether its at early retirement age or later. Granted, you will have more taxes to pay for sure though..lol

Hello; No I have not been working any paid jobs since I applied for SS at 65. All the quarters of work for which I paid into SS was before I started drawing SS benefits. I have not worked for pay since 2004. I turned 65 a few years later and then applied for SS.
I like the way you see it but the folks at SS do not see it that way. The way I know my benefits are reduced is I would get statements from SS time to time in the years before I applied at 65. To be clearer. I stopped working some years before applying for SS benefits. I received a pension from my teaching time on which i do have to pay federal tax. When I started receiving SS at 65 I wound up having to pay federal tax on a calculated portion of those benefits. It would be nice if your take worked.

EDIT - I forget which state, TN or NC, had a different way of doing pensions. In the one state,unlike KY, teachers did pay into SS each pay period. They also paid into a state pension plan but at a reduced rate compared to KY. At later life when they retired the got a state pension which is supplemented with SS benefits. I did not work in TN or NC long enough to become vested in either pension program.
For a time after i retired in KY there were two conditions. One was a shortage of qualified science and math teachers. There was also a requirement in some states that to teach in a field such as science or math you must be certified. I was certified in science, not just education. I also, after 28 years of teaching, had to take a PRAXIS exams to qualify to teach in NC. I did well on those exams. NC kept me for two years but found a younger person so let me go. In TN I knew going in it was just for the one years as I replaced the Biology teacher who took off to have a baby.
Anyway, after a time the states eventually reduced the requirements to teach math and science so there was less demand for an older teacher.

 

[shogun32]

Here in IL, teachers and others that have pensions still get the full amount of SS

heh, "Here in IL' explains a lot of what's wrong with IL fiscal policy.

 

[04mazdaspeed]

heh, "Here in IL' explains a lot of what's wrong with IL fiscal policy.

Normally I would agree but If i pay into it for 30+ years, I better get every damn dime thats owed to me...lol

 

[HoosierDaddy]

Normally I would agree but If i pay into it for 30+ years, I better get every damn dime thats owed to me...lol

FWIW, if I understand the following, he was NOT paying into SS some (much?) of the time:

I taught in public schools in KY and they did not cut ant SS payments from my teachers pay.

 

[sk47]

FWIW, if I understand the following, he was NOT paying into SS some (much?) of the time:

Hello; More correctly I did not pay into SS from my teaching position in KY. At other times in my life from high school, during college and having second and third jobs I did pay into SS with each paycheck just like everyone else.
I did not pay in enough to qualify for a top SS benefit check. According to SS documents I paid in enough to draw somewhere around $900. I wound up drawing somewhere around $300. (Estimated numbers). The greater portion of SS benefits reduced because I have a KY pension is the explanation given.

 

[JCFoster]

Maybe this helps clarify it.

 

[04mazdaspeed]

Maybe this helps clarify it.

Thats if your pension is from the government. A teacher and most others are public pensions. Social security is NOT reduced as long as your employer paid into FICA. This is taken from the same site you quoted the above.

"

Does a pension reduce my Social Security benefits? In the vast majority of cases, no. If the pension comes from an employer who withheld FICA taxes from your paychecks, like almost everyone else, it won’t affect your Social Security retirement benefits.

Can you get Social Security and a pension at the same time? Yes. There is nothing stopping you from getting both a pension and Social Security benefits. … If your pension comes from what the Social Security calls “covered” work, in which you have paid Social Security payroll, it has no effect on your benefits.

 

[sk47]

Thats if your pension is from the government. A teacher and most others are public pensions. Social security is NOT reduced as long as your employer paid into FICA. This is taken from the same site you quoted the above.

"

Does a pension reduce my Social Security benefits? In the vast majority of cases, no. If the pension comes from an employer who withheld FICA taxes from your paychecks, like almost everyone else, it won’t affect your Social Security retirement benefits.

Can you get Social Security and a pension at the same time? Yes. There is nothing stopping you from getting both a pension and Social Security benefits. … If your pension comes from what the Social Security calls “covered” work, in which you have paid Social Security payroll, it has no effect on your benefits.

Hello; During the years i was teaching in KY I was told about how the SS benefits from outside jobs would be reduced. After I retired some years before i turned 65, I was on my teachers pension only. I applied for SS and Medicare at 65. It turned out that the SS benefits I qualified for from work outside of teaching in KY was indeed reduced by around 2/3rds.

 

[04mazdaspeed]

Hello; During the years i was teaching in KY I was told about how the SS benefits from outside jobs would be reduced. After I retired some years before i turned 65, I was on my teachers pension only. I applied for SS and Medicare at 65. It turned out that the SS benefits I qualified for from work outside of teaching in KY was indeed reduced by around 2/3rds.

When you were a teacher, did you pay into SS? FICA? If not, that may be why your not receiving full benefits. Either that or different rules per state which I cant see. I am a city employee that will recieve a pension eventually. I also pay into SS every paycheck. When i turn 62, I am eligible for SS benefits although reduced if I decide to take them early. My SS benefits would NOT be reduced because I recieve a pension. The pension at least for "us" is not considered "income" when it comes to reducing SS benefits. If I was to work another job while collecting my pension, then yes, my SS benefits would be reduced but only until full retirement age.

 

[sk47]

When you were a teacher, did you pay into SS? FICA? If not, that may be why your not receiving full benefits. Either that or different rules per state which I cant see. I am a city employee that will recieve a pension eventually. I also pay into SS every paycheck. When i turn 62, I am eligible for SS benefits although reduced if I decide to take them early. My SS benefits would NOT be reduced because I recieve a pension. The pension at least for "us" is not considered "income" when it comes to reducing SS benefits. If I was to work another job while collecting my pension, then yes, my SS benefits would be reduced but only until full retirement age.

Hello; From my teaching salary SS was not deducted. Not sure about FICA from memory. I did have jobs which paid both at times during my working life. Jobs in high school & college before I started teaching paid into both. Extra jobs during the teaching years such as driving a bus, installing flooring, cutting timber and such did pay in to both. When I first started teaching there was no pay during the summer months so i had to scramble for jobs. Eventually the pay was paid out over all 12 months. After I had enough years in to retire in KY I did continue teaching in other places for six years and both were paid in two states for sure. So, I had a teaching career in KY which led to a pension and i had jobs apart from teaching in KY over my working life.
Because I taught in KY, that affected my eventual SS payout by reducing the amount earned from all my other jobs in which I did pay SS and FICA.

 

[Hack]

Not to derail this thread, but I heard an interesting tidbit recently. A market forecast about semiconductor chip production for cars increasing significantly next year. I think if production of new cars gets back closer to "normal" volumes we will see used car prices fall. But only if the automakers are making cars that people want to buy.

 

[shogun32]

semi for auto is increasing because semi for personal computing and cell is crashing. And used car prices at wholesale are coming down in huge fistfulls. Even new cars, eg Mustang are frequently listed at 8-10% off MSRP.

 

[Bikeman315]

Maybe, maybe not. The fact that so many went looking for a new to them vehicle while sitting at home with no idea if they still have a job. Tells me , many buy things when they want it and throw caution into the wind.

A new article published about this issue.

Car repossessions are on the rise in warning sign for the economy

https://www.nbcnews.com/politics/ec...l&utm_content=article&utm_campaign=email-2022

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