Taxable Social Security Benefits: How Big a Tax Hit Will You Take?
(By – Dan Caplinger)
Social Security benefits are an essential part of how retirees make ends meet, but one thing that shocks many Americans is that under certain circumstances, the payments they receive can be taxable income that they have to report on their tax returns. The formulas for determining your taxable Social Security benefits can be complicated, but with a bit of effort, you can figure out what your tax liability will be. In some cases, you can even take steps to reduce the amount of tax you’ll owe on your benefits. Let’s take a look at how to calculate your taxable Social Security benefits and what you might be able to do to ease your tax burden. Read more…