I personally dislike paying taxes. As a self-employed person, I’ve had to pay into Social Security and Medicare for years. Now that I’m over 65, I can say that I love my Medicare—it turns out that paying in was worth it. Soon, I’ll start receiving Social Security, and I’m glad I contributed because now I’ll get something back.
Over my 41 years as an attorney, I’ve heard plenty of “strategies” for avoiding these taxes. Many sound appealing—too good to be true. The reality is, tax evasion is a crime. Even if someone manages to work “under the table” for their entire career and avoids getting caught, they’ll still face the consequences later. Without those Social Security contributions, they’ll have to pay privately for Medicare (which can cost around $1,000 a month) and won’t receive Social Security benefits.
What about a spouse who never worked outside the home? Ideally, all the unpaid labor of running a household would come with compensation, but unfortunately, that’s not reality. However, if you’ve been married for more than 10 years, you may be able to collect benefits from an ex-spouse, and if you’ve been married for at least nine months, you can collect from a deceased spouse.
As frustrating as taxes are, paying them is crucial for financial security in retirement. Don’t fall for scams that promise ways to avoid them.
If you’re turning 65 and need help navigating Medicare, Social Security, or other retirement decisions, give me a call.
