Paying income taxes on your Social Security benefits
It’s an unfortunate reality, but chances are pretty good that at least a portion of your Social Security benefits – perhaps up to 85% – will be considered taxable. Benefits only actually became taxable when, back in the 1980’s, Congress made some changes meant to help shore up the program’s finances. But the income thresholds set then to trigger taxing benefits have never been adjusted for inflation. Consequently, as worker’s earnings have risen over the years, more and more people find that their Social Security benefits are now taxable because they exceed those low income thresholds established so many years ago. As columnist Dan Caplinger explains in this article appearing at madison.com, paying taxes on Social Security benefits has become a major problem for millions of Americans. Click here to read more.