Benefits and Taxation
Almost half of those collecting Social Security in retirement end up required to pay income taxes on their benefits. Taxes can be applied to as much as 85% of the pay out of Social Security. Most are shocked when this happens to them because they assume that Social Security benefits will not be taxed like other sources of income since they technically already paid taxes on it throughout their entire working lives. However, you will be required to pay taxes on Social Security if your other sources of income push you over in to a taxable bracket. Fortunately, this is pretty straightforward and easy to check and the amount you will be taxed for depends on how you file with the IRS. For more information on this subject, visit this article by Dan Caplinger with mySanAntonio.com