Federal Tax on Your Social Security Benefits
This timely McDowell News article by Maurie Backman discusses how your Social Security benefits may be taxed by the Federal Government, if your “provisional income” is more than a certain threshold. The thresholds at which your Social Security benefits become taxable actually depend on your income tax filing status, but suffice to say that the thresholds are quite low because they haven’t been increased since federal taxation of Social Security was enacted in 1983. That means, of course, that more and more seniors are paying tax on their Social Security benefits each year. As described in the article, although your monthly Social Security benefit payment doesn’t change, you could have a “sneaky” surprise waiting for you when you file your income taxes. Click here to read more.