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On Social Security benefits becoming taxable income
In what is unfortunately a surprise to many Social Security beneficiaries, benefits may become taxable income. For the IRS, your total “combined income” – which includes your regular adjusted gross income, plus any non-taxable interest you might have, plus 50% of your Social Security benefits – is the amount which determines whether your benefits will become taxable and, if so, how much. For single filers whose combined income is less than $25,000, and for married couples whose combined income is less than $32,000, no benefits are taxable. But, combined income exceeding those amounts could mean you will pay income tax on up to 85% of your annual total Social Security benefits. This article by Chris Kissell appearing at AOL.com explains how taxing benefit work and offers some tricks on how you can ease that tax burden. Click here to read more.