Guess Who Doesn't Get Any Tax Reduction at All!

The answer may be surprising. It's self-employed people who receive Social Security payments but continue to work at their own business. And that's a bunch of people. More than you'd think.

Here's why: If you earn under a certain amount of money each year, you're Federal Income Taxes are Zero. This year, there was an extra kick to that with an increase in the Standard Deduction for seniors.

However, if you work for yourself or own a small business, you end up filing a Schedule C. The amount of the profits you take are subject to the Self-Employment Tax. You're still paying into the Social Security and Medicare fund, even when you're receiving benefits. How much? 15.3% of your profits is how much. If you make money after business expenses, you have to pay that tax.

Oh, well, but it comes as a surprise to many new SS and Medicare recipients. Get used to it. It's not going away.