Many senior citizens got an unpleasant surprise this February. Pensioners and seniors who rely on federal benefits to make ends meet were hit with the harsh new reality of the federal financial landscape when they discovered that their social security checks had been decreased. Although some were warned about the change in a letter that came with their check, many were left guessing.
We spoke with a New York City Estate Planning Lawyer, who explained the recent change in benefits. The reduction in the payout for senior citizens was an indirect result of the new tax relief act, which was enacted in tax year 2010. The new tax relief act cuts social security taxes for those still in the workforce, which federal economists hoped would help stimulate the economy by giving those who are still contributing to the marketplace more expendable income.
In order to make room for the new cuts, which according to the New York Estate Planning Lawyer amount to approximately a two percent drop in collected income by the IRS, the federal income taxes for those who are not working were raised, effectively lowering the payout for retirees and others who depend on social security benefits. Lawyers in Nassau and Suffolk Counties must be aware of these and any other changes that come down and effect Estate Administration.
Whether the raise in the tax rate for those receiving government assistance continues beyond the next few years is anyone’s guess, said the New York Estate Planning Lawyer. He further suggested that the best way to avoid getting caught in the crunch is to carefully review your finances with a qualified professional.
If someone you know has been impacted by the new tax legislation, they can reach out to a New York Estate Planning Attorney for assistance in navigating the new laws. Don’t let your loved ones be caught unaware- call a New York Estate Planning Attorney today.