Latest News
See What Income Tax on Social Security Looks Like
Retirees are often stunned to find they must pay income tax on Social Security benefits. Martin Dasko notes it’s important to plan for this fact and to consider the implications of your retirement age and other income streams when managing your finances. While Social Security benefits are taxable at the federal level, it’s overall income that determine whether you pay taxes. You must pay federal income taxes on your benefits when you have a significant amount of income in addition to your benefits. For example, if you have self-employment income, dividend income and other taxable income streams, then you may have to pay taxes since you’re likely earning over the threshold. Threshold have not been indexed for inflation and thus ensnare more people each year. Full piece here explains what taxes are like using examples.