Latest News
Does Your Retirement Plan Know Your Social Security Could Be Taxable?
When planning for your retirement, it’s necessary to consider your income needs compared to your living expenses during your golden years. And as you probably already know, Social Security will play an important, if not crucial, role in your retirement income plan. But, what far too many retirees don’t realize is that your Social Security benefit may very well become taxable income, and higher income tax means less disposable retirement income for you.
Social Security benefits have, since 1983, been taxable if your overall “provisional” income exceeds a certain level. When taxing of SS benefits was first made law, up to 50% of your benefits could be taxable if your provisional income (from all sources) exceeded $25,000 as a single IRS filer, or $32,000 if you file “married-jointly.” Then in 1993, an additional threshold was added to make up to 85% of your SS taxable if your income as a single exceeded $34,000, or $44,000 as a married couple. Unfortunately, this comes as a surprise for many retirees.
This article by Christy Bieber appearing in The McDowell News (NC) explores the question of taxing Social Security benefits - how it works and how much you might pay. Click here to read more.
This posting is presented for informational purposes only and does not represent legal or financial guidance. Any opinions or interpretations presented are either those of the original author or, in the case of articles authored by the AMAC Foundation, are the opinions of AMAC Foundation staff, originally trained and accredited by the National Social Security Association (NSSA) and certified via the AMAC Foundation. Any links included in the article are valid on the posted date; socialsecurityreport.org cannot guarantee the duration of the links’ validity. NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (https://amacfoundation.org/services/) or email us at ssadvisor@amacfoundation.org. Because we are a non-profit organization, there is no charge for these services.