Income Taxes, COLA, and Social Security - US News & World Report
With much fanfare, media pundits trumpet the news of the forthcoming 3.2% Cost of Living Adjustment which will appear in everyone’s Social Security benefit starting in January. But, how will that additional money affect your income taxes, and how much of it will you actually see? All good questions, which are explored in this article by Rachel Hartman appearing in U.S. News & World Report.
The article explains that because of an increase in the Medicare Part B premium you won’t actually see the dollars for a full COLA increase, but the full amount will still be considered taxable income. And that can affect your taxes. The article goes on to explain how COLA works and offers tips on how to plan for taxes on your Social Security benefits. Click here to read more.