wannaretire
Dec 12, 2008, 02:40 PM
My last social security statement showed a reported income which was less than the previous year, although my income actually went up. Human resources told me it was due to the increased tax-exempt medical premiums I began paying that year (my husband retired and I put him on my medical plan).
Am I correct in believing the higher the medical premiums go (I'm told to expect a 12% increase in 2009), the less social security I will receive in the end as my tax-exempt income increases and my reported income decreases?
How can I determine and compare the tax savings I'm currently realizing versus the loss in future social security income?
Would it be better to waive the tax exemption?
Thanks for any information. I'm baffled.
Am I correct in believing the higher the medical premiums go (I'm told to expect a 12% increase in 2009), the less social security I will receive in the end as my tax-exempt income increases and my reported income decreases?
How can I determine and compare the tax savings I'm currently realizing versus the loss in future social security income?
Would it be better to waive the tax exemption?
Thanks for any information. I'm baffled.