Social Security pensioners will be the first taxpayers to feel the effect of the new withholding tables, which began to be applied this month, with this change joining the 3.57% interim pension increase.
From tomorrow, the 10th of July, Social Security pensioners will receive their pensions calculated under the new IRS withholding tables. For many pensioners, the new withholding model will translate into a reduction in their monthly tax rate, thus, a pensioner (not married), with a monthly pension of 1,200 euros gross will receive a net amount of 1,050 euros, after tax.
So technically, with the new increase and withholding tax rules, pensioners should be a little better off.
However, it would have been nice to have seen the calculations of the net income for a married couple living on a basic pension, especially as a report released earlier this year stated that a vast majority of Madeira’s pensioners are living on a basic or near basic pension.
Samantha Gannon
info at madeira-weekly.com
