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Thursday, July 22, 2010

Are Gulf coast fisherman eligible for Medicare and Social Security?



The gulf coast fisherman who aren't paying Income Tax are likely not paying FICA payroll tax which pays for Social Security and Medicare benefits.

You must pay FICA for 40 quarters (10 years) to get minimal Social Security benefits and also to be eligible for Medicare part A that covers hospitalization, which is free.

Part B covers doctor's visits and the Social Security beneficiary pays a monthly fee for part B and also a $20 co-pay when you visit a doctor office. Part B is optional and retirees do not have to enroll.

The Federal Insurance Contributions Act (FICA) is a federal law that requires most employers to withhold two separate taxes from the wages they pay their employees: a Social Security tax and a Medicare tax.

If you are self-employed, you must also pay these taxes. If you have worked in a job where FICA taxes have been withheld from your paycheck, or if you have paid these taxes as a self-employed worker, you have worked in Medicare-covered employment.

People under 65 must earn a certain number of credits of Medicare-covered employment to get Medicare benefits (depending on their age).

Those 65 and over qualify for free Part A Medicare if they have earned a minimum of 40 credits of Medicare-covered employment. You can earn up to four credits a year, based on your earnings. Most people earn 40 credits in 10 years of work.

The 40 quarters of work is also the minimal requirement for basic Social Security benefits. This special minimum benefit is about $600 per month.

If you want to know how many credits of Medicare-covered employment you have, check your most recent Social Security statement.

If you have not gotten a Social Security statement or would like a more recent one, you may request one by calling Social Security at 1-800-772-1213, or you may request one online: Request a Social Security Statement.

Bottom line: The Gulf coast fisherman may have been making a nice living because they didn't pay taxes, but they are having major problems filing claims with BP because they re unable to document their income with a 1040 or a W-2. 

When these tax scofflaws reach retirement aid, they will probably have to use Medicaid for medical care and get food stamps to eat. The government will provide them with about $600 a month to live on because they won't meet the 40 quarters requirement.

Because many of these fisherman pay no payroll taxes at all, they aren't even eligible for unemployment compensation. Working class people need to rethink their views on tax avoidance and tax evasion.

Most of the people who don't pay taxes are Red Staters like these fisherman.


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