Taxation of Social Security Benefits - Yahoo!
As the saying goes, there are only two things which are definite, and one of those is taxes. And, unfortunately, retirement income – including your Social Security benefit – may very well become part of your income taxable by the IRS. The good news is that there are thresholds under which you won’t need to pay income taxes on your benefits, but the bad news is those thresholds are quite low. In fact, the thresholds haven’t changed since taxation of Social Security benefits was enacted in 1983, which means that more and more seniors are paying federal income tax on their Social Security benefits. And, depending on where you live, your state may also want a piece of your retirement benefits, including some of you Social Security benefits. The rules are fairly complicated, but very well described in this Yahoo! article by Sarah Sharkey. Click here to read more.
If you’re unsure about how these basics apply to you, or if you have any questions about your individual situation under Social Security, note that the AMAC Foundation provides a free-to-the-public service to help Americans navigate the complexities of this program. Learn more about it here…