Q. I had more money taken out of my paycheck No. 26 for Social Security old age, survivor and disability insurance and a notation saying “rate change.” I looked at the Social Security page and there has been no rate change to the amount of money taken out for Social Security (OASDI) in 2013. It is the same amount of money taken out as 2012. Even though we get receive our check in January 2013, the earnings are from December 2012. I can’t find any information on any rate change on the NFC Web page. A. Where have you been?…
Browsing: taxes
Q. I will retire this year under CSRS. I lack three quarters to qualify for Social Security benefits. Will Social Security taxes be deducted from my lump-sum payment for annual leave? A. If you are a regular CSRS employee, you haven’t had any Social Security taxes deducted from your pay and you won’t have any deducted from your lump-sum payment.
Q. I am retired from the Postal Service. I am turning 66. If I pick up Medicare Part B, can I claim it on my taxes? How much in yearly salary can I earn if I go back to work? A. If you have reached your full Social Security retirement age, there is no limit on the amount you can earn. However, if you were to return to work for the federal government, in most cases your salary would be reduced by the amount of your annuity.
Q. Is there any way to figure out how much would be deducted from a Postal Service annuity check due to an early-out? I live in Jamaica, N.Y. Will they still deduct federal, state, Medicare, Social Security? A. Federal taxes will be deducted, but New York state taxes won’t. Neither will Medicare Part A or Social Security taxes. That’s because those two are only deducted from earnings, not annuities.
Q. I’m a traditional CSRS employee with 35 years and no break in federal service. My retirement contributions have been taxed over the years through the bi-weekly payroll deductions. I also paid $5,000 to get credit for military time. When I retire, will some of my monthly annuity check be exempt from taxation since it is considered return of principal? How is this amount calculated? A. Your answer is in the Internal Revenue Service’s Tax Guide to U.S. Civil Service Retirement Benefits. You can download a copy at www.irs.gov/pub/irs-pdf/p721.pdf.
Q. Will I benefit from my husband’s Social Security pension once he applies for benefits at full retirement age? Beginning Jan. 3, I will begin collecting CSRS retirement. My husband (a retired lieutenant colonel) indicated that once he reaches full retirement age, he’ll apply for Social Security benefits and that I will be entitled to a spouse’s pension from his benefit. I think that, because my CSRS pension is so high ($75,000), my benefit will offset any benefit I would be eligible to receive from him. A. Because you are receiving an annuity from a retirement system where you didn’t…
Q. I left federal service in 1988 after 13 years of service and took out my CSRS money, which was about $20,000 at that time. I have decided to return to federal service and want to be in CSRS Offset. I was told that repayment would include yearly interest and would be about $80,000. How is interest calculated? May I roll over either an IRA, Roth or my personal 401(k) into the CSRS Offset account to repay my debt and avoid paying taxes? What about the taxes on the $20,000 that I paid in 1988? Would they eliminate at least…
Q. I am a 65-year-old federal employee on the CSRS retirement plan. I plan to retire next month after 39 years in the government. I have earned 20 quarters of Social Security credits but need 20 more to qualify for any benefits. Would it be worth my while to work for five more years (20 quarters) in private industry to qualify for these benefits, or will it all be offset by the CSRS retirement? If I choose to work, what is the minimum amount of money I have to make each year or what is the minimum number of hours…
Q. As a CSRS Offset employee for retirement purposes, what are the dollar limits on either federal employment or private employment after retirement and receiving your pension? Are there tax implications? A. If you return to work for the federal government, in most cases your annuity will be reduced by the amount of your Social Security benefit. On the other hand, working in the private sector would have no effect on it. Note: When you are eligible for a Social Security benefit at age 62, two things will happen: First, your CSRS annuity will be reduced by the amount of…
Q. I am planning on retiring in February. At that time, I will be 60 years old and will have 27 years under FERS. 1. Am I entitled to the special retirement supplement? 2. Does receiving the supplement affect my Social Security payment at age 62? 3. How long after retiring can I expect to receive my first payment, and roughly how much will it be? 4. Are state and federal taxes deducted from it? A. 1. Yes. 2. No. The special retirement ends at age 62 when your Social Security benefits begin. 3. I have no idea. However, the…