Tax Time…Has Last Year’s COLA Put You Over the Threshold?
Many seniors with taxable income close to the threshold for including Social Security benefits as part of the calculation may wind up with a tax bill as a result of last year’s higher-than-usual cost of living adjustment. The threshold for single filers is $25,000 for up to 50% of their benefit to be roped into the calculation, and $34,000 to bring in up to 85%. For couples, the thresholds are $32,000 and $44,000. Not a pleasant situation, of course, but relief for next year might be on the way (see today’s headline post). For this year, though, check out the cnet.com post by writer Katie Teague for more background on the tax issue.