Social Security Report

The Social Security Rule That is Costing Seniors Billions - AMAC & The Motley Fool

Kailey Hagen explains the chatter about what is changing for Social Security in 2024. Essentially it is the typical yearly changes tied to inflation that affect benefits, the wage base, and how much can be earned through working and collecting. But this piece is about what is NOT changing, namely the thresholds for where income tax kicks in. Hagen explains the first income tax was imposed on benefits in 1984 as part of the 1983 amendments to rescue the program from insolvency. Additional taxation passed in a 1994 law. Those rules remain in effect today. Since thresholds were not indexed for inflation, more people are ensnared by tax each year, costing seniors billions. She notes it might be possible for some to avoid income tax on benefits by reducing their taxable income in other ways. Full article here.

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