“As America braces itself for another Tax Day on April 18th, AMAC is highlighting a bill introduced by Congressman Fleming (LA-04) early last year. Filing taxes is a complicated and time-consuming process. For seniors, the time spent completing the different forms for Social Security benefits, private investments, and supplemental income can be daunting and confusing. H.R. 1397 simplifies the process and forms through which seniors citizens complete their taxes. This practical solution will save countless hours in preparation, and has the potential to save seniors millions of dollars in out-of-pocket expenses in navigating the current tax system. AMAC is proud to support Congressman Fleming’s smart, forward-thinking legislation to help senior citizens successfully traverse a complicated time of year.”
Originally posted 3/18/15 –
AMAC recently supported the bill H.R. 1397, the “Seniors’ Tax Simplification Act of 2015.” This legislation was introduced by Representative John Fleming (R-LA-04) and Representative Gwen Graham (D-FL-02). This bill is not just great for American seniors but is a positive first step in simplifying the tax code for America. AMAC firmly believes that the “Seniors’ Tax Simplification Act of 2015” is the exact type of commonsense legislation that should be generated and embraced by elected members of Congress. H.R. 1397 will make it easier for older Americans to file their taxes quickly and efficiently, and it will not cost the U.S. taxpayer or use federal revenue to be implemented. AMAC believes that this bill is a critical piece of legislation that will go a long way in improving and easing the lives of mature Americans and seniors – especially around tax-time.
March 18, 2015
The Honorable John Fleming
4th District, Louisiana
2182 Rayburn House Office Building
Washington, DC 20515
The Honorable Gwen Graham
2nd District, Florida
1213 Longworth House Office Building
Washington, DC 20515
Dear Representative Fleming and Representative Graham,
On behalf of the 1.3 million members of AMAC, the Association of Mature American Citizens, I am writing to offer strong support for your bill, H.R. 1397, the “Seniors’ Tax Simplification Act of 2015.” This timely legislation is not just great for American seniors but is a positive first step in simplifying the tax code in America.
Representing both currently retired and older working citizens, AMAC greatly appreciates and values any bill that looks to simplify the tax code for hardworking mature Americans. In an era of increased federal tax regulations and growing revenue reporting standards, American seniors and prospective retirees should not be unnecessarily burdened with administrative government paperwork that is complicated, confusing, and/or redundant.
AMAC firmly believes that the “Seniors’ Tax Simplification Act of 2015” is the exact type of commonsense legislation that should be generated and embraced by elected Members of Congress. H.R. 1397 will make it easier for older Americans to file their taxes quickly and efficiently, and it will not cost the U.S. taxpayer or use federal revenue to be implemented. Looking ahead, H.R. 1397 can also serve as a practical, real-world model for wider simplification of the U.S. tax code, which is desperately needed.
Thanks to your innovative thinking, leadership, and concerned attention, AMAC is proud to support H.R. 1397, the “Seniors’ Tax Simplification Act of 2015.” AMAC believes this bill is a critical piece of legislation that will go a long way in improving and easing the lives of mature Americans and seniors – especially around tax-time. We strongly urge complete passage of this bill by the U.S. Congress as quickly as possible.
Sincerely,
Dan Weber
President and Founder of AMAC
PLEASE SUPPORT THE SENIOR ACT AN HR 711
I have found that the tax forms that I have done accurately over many previous years (with my handy Texas Instruments hand calculator) serve as the best check against any unintentional errors that I may have made during the current filing year. Since my family/tax situation is pretty stable, I can quickly determine if my current calculations are accurate (not out of whack, so to speak)) by comparing them to the calculations on the forms of my previous submittals. It is also a pretty good check of the intellectual acuity for any senior citizen who does his or her own taxes. Let’s not “upset the applecart” here!..
As a senior and a Tax Professional, I would like to see a copy of the bill. Has it been published?
H.R.1397 – Seniors’ Tax Simplification Act of 2015
https://www.congress.gov/bill/114th-congress/house-bill/1397/text
H.R.1397 – Seniors’ Tax Simplification Act of 2015
https://www.congress.gov/bill/114th-congress/house-bill/1397/text
Sir,
It has. Just google search the name of the bill and you can see a copy. Prepare for a large disappointment.
What’s needed is to eliminate the double taxation of Social Security benefits on line 20b on FM 1040. That’s where AMAC’s effort should be directed. In addition support the FAIR TAX Act H25 and S122.
Hey, let’s get behind a flat tax (which Ted Cruz endorses) or the FairTax. Period. Simple!
I finally Google searched the bill and read it. What a crock. The word “vague” doesn’t begin to describe the thing, but it’s the closest I can come. What it says to me is that they want to make it easier for us doddering old fools to fill out our taxes and give the government their money that we owe them after all these years of hard work and taxation. I’m surprised there’s nothing in the bill about making the forms drool-proof, I also worry about what items could be attached to such an open ended bill that would end up making our golden years all the more expensive and miserable.
I have to agree that vague simply doesn’t do this piece of legislation justice. Like so much legislation put forth these days, all this legislation amounts to is a vague outline of what it should theoretically do with the details filled in later by whatever government agency, in this case the IRS, is tasked with implementation. Virtually anything coming out of Congress in an election year, by either party, is guaranteed to be largely “feel good” legislation simply designed to make the folks back home think their Congressional representatives are “hard at work on their behalf” (sarcasm intended obviously).
What I find amusing is that AMAC seems to champion any piece of legislation with the word “senior” in it. As if that is the golden standard for whether a piece of legislation makes sense and should be supported by the organization and its members. Yes I know I’m being way too analytical. Unfortunately, my whole professional career was based around highly detailed problem analysis and resolution of complex issues. So I tend to expect most competent organizations, at least to some degree, to do a bit more probative research to validate the underlying value of a piece of legislation supposedly geared towards benefiting their members. Of course in this case, that apparently didn’t happen. Oh well, kind of par for the course so to speak.
Paul,
I agree that AMAC is reprehensibly supporting any legislation that, on the surface, claims to make life better for us as senior citizens without doing any type of homework on it. You, I, and several other commenters on this article took a small amount of time and looked at the bill. We all seem to agree that it is absolutely pointless. Why couldn’t our “spokesmen” at AMAC do the same? This is not the first time that AMAC has supported a bill that most of its membership find repulsive. It leads me to believe that the people at AMAC believe that they have found a market in senior citizen insurance. Their marketing tactic is to claim to provide an alternative to AARP. To my mind the only difference between AMAC and AARP is two letters.
I agree the main objective is obviously the sale of insurance and insurance by products (annuities, etc.) to seniors. It is also, through its ongoing lobbying efforts on Capitol Hill, selling Congress on their so-called “solutions” to both Obamacare (pitching their lightly tweaked version of Obamacare that would entail the federal government mandating the very same products AMAC just happens to sell as part of the solution) and Social Security “reform” (inclusion of their annuity products as part of the mandated investments portion as a way to rescue the failing annuity marketplace via a new federal mandate forcing the public to buy these high commission, high cost products). So they are not only looking to sell to the individual seniors market, but also be included in any federally mandated programs as well. The Marketing spin of “the conservative alternative to AARP” is simply that…empty marketing spin. Your conclusion that the only difference between the two organizations is two letters is a nice touch.
Paul,
Yeah, we’ve had this discussion before. What really riles me is that there have been quite a few of their programs that have met with almost universal distaste and anger from the commenters on this web site which has resulted in absolutely no response from the organization. I know that when they ask me for a renewal of my subscription they will be in for a disappointment. I have also noticed that they have changed whomever is running their comments section and now, when you ask for notification of replies to your comment, you get a notification that you’ve “subscribed” to something and then all you get in your inbox is a bunch of AMAC sponsored advertisements. This gets worse and worse every day.
LOL!!! That sums up everything so well. More and more like what used to be like when trying and communicate with AARP on almost any subject every day. They just blitz you with product advertisements and completely ignore member feedback as they continue on their merry way.
Yes, I have already gone to the Daily Signal for most of my political news. Much more interesting articles and a truly conservative site. Their commenting mechanism leaves a bit to be desired.
What the heck does the bill do? Usually they simplify us into bankruptcy.
Want to simplify taxes, just eliminate income tax withholding and estimated tax. Everyone writes a check on April 15. You will no longer have the great unwashed saying, “I don’t pay taxes, I get money back”. It will also cause government spending to decrease as the citizens will realize how much it is costing them.
Another thing I do’t understand, if you underpay your withholding or estimated taxes you have to pay a penalty. If you overpay the IRS does not pay you interest.
Previously I have contacted AMAC about supporting the Fair Tax bill HR 25, the request fell on deaf ears. Probably because it wasn’t the idea of someone in AMAC that could take credit for the idea. Let’s get by that small thinking. The Fair Tax eliminates April 15th, you receive you whole pay check. Too many other benefits to mention here. Please go to FairTax.org you will be amazed how this legislation will help our Country and its people. What’s propose in the Seniors Tax Simplification Act is too short sighted and comes across as another special interest issue and just adds to the already zillion pages of tax code we have to deal with. Is that exactly what we are trying to get away from. For us Seniors it would mean you would get all of your Social Security and Pension checks. Think what it would do for your kids and the grandkids.
What is my effective tax rate?
1. From your 2015, 1040 take line 44 (your tax).
2. Divide it by line 43 (your taxable income).
3. Carry decimal over 2 places to the right on your answer.
4. This is the percentage of your income you paid in federal taxes.
This can be done on your state taxes as well to find effective rate.
So remember next time someone says we need a flat tax of say 17 or 15 % you’ll know what you actually pay in taxes. And I lay odds most of you pay an effective rate of less than 12%.
To figure your effective tax rate you should use your TOTAL GROSS INCOME, not your taxable income.
I’d bet most retirees have a true effective rate of under 10%, with many well under that.
The so-called “Fair Tax”, or consumption tax has a MAJOR FLAW!!!
What about all of our retirement savings that we’ve ALREADY PAID income taxes on, and/or are in tax-exempt investments like Roth IRA’s. With a national sales tax, we’ll be DOUBLE TAXED on that same income when we spend it in retirement.
Please keep in mind that with the FAIRtax, interest accrued on savings and investment will be tax free. Also, there will be no withholding from pensions and social security resulting in increased income. In addition to that, each household will receive a prebate which for a couple would be $455/month for 2016 and will be indexed according to federal HHS figures. And when spending your income, you have the choice of buying some used products such as a car or a house which is not subject to the FAIRtax thereby reducing your effective tax rate. In summary, seniors will have more buying power with the FAIRtax than they have now. I am 73 and the only thing I’m am is tolerant of people that condem before they investergate.
I have been my own taxes all my life and they become more and more complicated but as a senior I notice that the tax code doesn’t help you in any way -in fact after a lifetime of saving you may find out you are paying as much now as a working person just by the RMD requirement and the taxation of social security. This tax simplication may sound good but beware it will end up being another publication to read and decipher and they maybe will remove a few lines that do not pertain to you. It will do you no favors and add more to federal budget to implement and print. When they decide to help you, beware.
I just did my taxes and what a nightmare. I hope it’s correct yet somehow I owe the IRS $22. I’m on SS. They claim I underpaid Obummercare which does NOTHING for me. I’m not eligible for Medicare until November. I struggle as is and I’ve NO DOUBT they will find a way to penalize me.
What happened to our Country????
Although I trust AMAC to generally support things I agree with, the devil is in the details. I learned a long time ago not to sign on to good sounding programs without actually knowing what is contained in the fine print. You need to at least summarize the provisions of this proposed legislation before asking your members to support it.
Exactly. All that seems available is some vague generalities with details to be supplied AFTER it is enacted. Sorry, but I don’t buy into anything I can’t find the details of first.
Having had to pay thousands in fines, interest and back taxes on my piddling retirement income over the past several years, I support any effort at simplifying an intentionally misleading and complicated set of 1040 tax “instructions”, worksheets, and the pertinent forms.
Just be careful how the government defines “simplification”. Politicians have a different perspective than most of us as to what that means. That’s why I asked for a copy of this new, supposedly easier form. Of course it does not actually exist yet, so we’re supposed to just blindly buy into the vague language and scope of this bill and hope it all works out. I think we’ve all been burned far too many times to fall for that yet again.
I emphatically suggest that you actually read the bill before blindly supporting it. Sadly, it is about as clear as a swamp after a hurricane. Don’t fall for the ‘we have to pass t before we find out what’s in it” line again. We see where that got us.
Just how does this simplify anything when you can no longer pick up the user pertinent forms at the post office, bank or library? On the internet you have to download (print) hundreds of irrelevant forms to find what you need. Abolish the criminal IRS.
Where is the text of this bill?
I agree with Edward, we should not be taxed on Social Security. We were already taxed on it when we earned those dollars. If we has put that into an investment account, it would be paying much more than Social Security does.
What bothers me is: I had an investment that lost money over the years and I got a rebate last year, it was supposed to go to this years taxes and two more years to come, but they sent me a check for $1809.00. Because they sent me the check it was deducted from my payments of last year and now I have to pay the government $180l.00 as it looks like they added it to income. What is with that? And you wonder why people don’t trust the IRS or the government!
Sounds like whoever did your taxes made a mistake. If you have a capital gains tax loss that excesses the maximum deductible allowable per year off ordinary income, your loss balance is supposed to be carried forward to subsequent years.
What we really need is not to be taxed on social security.
The “reasoning process” behind the taxing of Social Security benefits was based on the notion that SS recipients should only receive a tax exemption on the amounts they actually paid in, and that amount we contributed should be spread out over out estimated lifespan.
In 1984 (Reagan) 50% of social security was taxed for taxpayers whose AGI income exceeded $20,000 for singles and $25,000 for a married couple. Then in 1994 (Clinton) the percentage was increased to 85% once your provisional income exceeded $34,000 for singles and $44,000 for married couples.
It was designed to increase tax revenue without admitting they raised taxes and was done by both parties.
Perhaps someday we’ll get an administration that will get serious about taxes and remove both shoes so they can get at their other 10 digits to help add and subtract.
PaulO, you say “perhaps someday we’ll get an administration that will get serious about taxes, etc.” … Exactly which Presidential candidate do YOU think can accomplish this? Please tell us who you would prefer be elected President? … Waiting for your answer …
The 114 Congress RE: HR 1397 has passed and became law.
My problem is not so much with the tax forms, but with obamacare. Since retiring at 62, I have had to pay a substantial amount of money (over $3000 in the last two years) back because I underestimated my annual income. I’m finally catching on the gimmick, and intend to grossly overestimate my income for next year. I would rather pay more in insurance premiums throughout the year than get hit with a lump sum payment at the end. I’ll be glad when obamacare is repealed.
Obamacare was never designed to save you money. It was merely a mechanism designed to facilitate the re-distribution of wealth through the government’s hands, after they take their cut, to individuals and groups it deems “more deserving” and reliable Democrat voters.
PAULE, i agree with. It’s sad that people just don’t realize what Obamacare is really about. So many seem to have just accepted it as what passes for our healthcare system now. We have to keep pushing to get it repealed because it has so many negatives still to come down the pipe. The sad thing is that the really good company provided plans aren’t going to be eliminated until after the election in Nov. so those working uninformed won’t know about when after they vote.
Yes HAM, that’s why Obama unilaterally moved the start of the Cadillac Tax portion of Obamacare to begin AFTER the 2016 election. I too am disappointed that so many people have just surrendered to accepting Obamacare as the “new normal” regarding health care. Sheep being lead to the slaughter in more ways than one. Sadly the Republican nomination process and all media attention has deteriorated to focusing on name calling and other completely unimportant issues. Given the dire circumstances we face if any Democrat wins in November, you would think the whole tone and message of the campaigns would be focused on the important issues. Not this nonsense.
This is a serious topic especially for seniors.
As with millions of other VITA volunteers I’ve witnessed the surprise of seniors when they’ve found their social security number has been compromised and someone else filed a tax return using their SS#.
As often as VITA volunteers we send seniors away telling them their income is below the filling threshold and it’s not necessary for them to file.
However that leaves their SS# out there for someone to file a false return. And it happens a lot.
I believe everyone should file a return whether or not you’re required, every couple of years just to get the information out to the government that you’re alive and well and still using your SS#.
I don’t know what has happened with this legislation but hopefully we come up with a simpler 1040SR form. It’s very much needed and deserved by seniors who have paid in a working life time of taxes.
PaulO, I notice you don’t refer to us seniors but to seniors in general. Is that because you’re not really a senior yourself? … Typical Liberal, always knows what’s best for everyone else by wanting the government to keep better tabs on everyone so as to control everyone better. Besides, if I don’t receive my Social Security monies one month, someone, probably the government, is stealing it.
I like Senator Cruz’s idea of eliminating the IRS in its entirety better. … Vote Cruz and let’s put some sanity back into our government!!!
Fair Tax
that is ; (fairtax.org) ck. it out