It’s Tax Season–And Social Security Taxation is Again in the Picture
The fact that Social Security benefits may be subject to federal income tax comes as a surprise to many first-year beneficiaries, and it’s certainly not a pleasant surprise. The taxation of benefits is a net that is capturing more and more filers each year as inflation drives up income, and as the thresholds adopted decades ago remain unchanged. When the laws on taxation of benefits were enacted way back in 1983, the intent was that no more than 10% of filers would be affected…today, about 60% are affected, simply because the thresholds have never been adjusted.
So, in case you’re not clear on how this issue applies to your situation, we’ve included today a link to an Investopedia.com post by financial reporter Melissa Horton covering how the taxation issue works. Check it out here…