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Understanding Taxation of Social Security Benefits
For many folks, slightly more than half of all retirees receiving Social Security benefits, the annual federal income tax filing process reawakens the annoyance of having Social Security benefits included in their taxable income. Of course, what makes the process most painful is the fact that many of these filers reach the thresholds for taxation despite not appreciably improving their economic situation. The reason for this is that the thresholds above which federal taxation kicks in have not been adjusted for inflation since being put into effect decades ago. And for even more folks, there is the fact that their state of residence also applies an income tax that includes all or part of their Social Security benefit. Journalist Beverley Rayner, in a post on vigourtimes.com, offers a brief recap of how the process works. Check it out here.