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Taxes in Social Security Outdated
There is an outdated tax that is affecting more and more retirees and their Social Security benefits in a negative way. Many do not know that their benefits are subject to taxation should they reach a certain threshold in post-retirement income. Many retirees find themselves needing to work in retirement in order to make ends meet because their Social Security benefits are not enough to support them. But, they do not realize that reaching just $2,083 in income each month puts them in a bracket that makes half of their Social Security benefits taxable. The most recent calculations to reach this threshold come from the Clinton administration in 1993 and has not been reevaluated even though inflation has happened since then and continues to happen, further worsening this arbitrary threshold. For more information on this topic, visit this article by Sean Williams with The Motley Fool.
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