Posted by LifeTank©️Editor's Note:As a conservative society, the entire social system and political system in the United States are intertwined and intertwined. For newcomers, the entire system is not well-developed with relevant Chinese information, and its veins are not particularly easy to understand.
For new immigrant families, because they are halfway into an unfamiliar social system—not on the same starting line as the residents of the country—they need to pay a higher cost to obtain the same basic protection in the system.Therefore, it is particularly important to understand the relevant social system and rules as soon as possible, and to continue to maintain the current advantages in the new situation.At the same time, we often have the subjective desire to "integrate into mainstream American society." However, since the change of individual thinking mode does not happen overnight, we are enthusiastic in the early days.Proactively try, There will be the possibility of encountering a wall or being harvested. Repeatedly many times, it will often fall into myth.
Retire Guru© ️The Retirement College believes that the so-called "integration into mainstream American society" basically refers to learning and understanding the basic operating rules of the mainstream American social system, such as the American education system, retirement pension system, financial system, and industry system, and mastering relevant The basic rules of the system, according to personal and family planning,Participate and integrateAmong them, to achieve the goal of having a good life in the United States (providing the old and the sick).
Nowadays,American Life Insurance GuideTax columnist invited by the communityApril Chen, CPA, will help our readers understand the most basic "Tax points and working years", explain.
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During the tax reporting season, many new immigrant customers mention the "4 points" problem.
What are the 4 points?
So what do the so-called "4 points" mean?What does it have to do with our retirement in the United States?
In the United States, when you work, you can earn points for your social security benefits (or understood as retirement pension benefits).In order to meet the conditions for receiving social security benefits (also known as retirement benefits, Social Security Benefits), you need to have a certain number of points before you retire.
most peopleIt takes 40 points to be eligible for retirement benefits。退休所需要的40個積點就是我們上文提到的“4個點“。40個積點是指工作滿十年，每年最多積累4個點，10年累計滿40個點才有領取退休福利的資格。
How to calculate "4 points"?
According to the US Social Security Administration (Social Security Administration), labor income in 2019You can earn 1360 work point with an income of over $1.
每年最多積四個點，哪怕您收入已經超過$10萬，一年也只有4個積點。也就是說您2019年的年工作總收入最少要$5,440才能積滿4個點。
For W2 employees who receive salaries from the company, as long as your W2 income reaches $5,440, the tasks you accumulate this year are considered to be successfully achieved.
Broker, how do people who do business by themselves count?
So, for 1099 Misc or other freelancers, is it enough to earn $5,440?
It should be noted here that for taxpayers who declare freelance income, they must beYour net profit minus 50% of your self-employment tax (Self-Employment Tax) will reach $5,440, To complete the point task.
I believe that the "4 points" problem has been basically solved here.However, I also believe that there are definitely many people who have more questions.
Frequently Asked Questions
-My house is rented out to make money and pay taxes. Are there any points?
-Answer: No.
-My company/stocks/real estate capital gains are taxed, are there any points?
-Answer: No.
-Is there any points for my income tax return from overseas work in China?
-Answer: No.
So what kind of income earns points?
The answer is: work income.
W2 salary or freelance income.Because retirement benefits are derived from the social security tax paid on work income (Social
Security Tax) and Medicare Tax.These two taxes are also equivalent to the self-employment tax paid by freelancers.
In addition to work income, any other income, no matter how much money you make or how much taxes you pay, there is no point.
Therefore, when filing taxes for your retirement plan, you must understand clearly what taxes you are paying and whether you have paid social security taxes and medical assistance taxes.Do you get these "4 points" every year.
Don’t wait until you are ready to retire and find out that when you reach your age, you don’t have enough points, and you still need to pay for the basic welfare protection after retirement.
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