Understanding the “Taxability” of Your Social Security Benefits
It comes as a blunt surprise to many folks, but the monthly benefits paid to them out of Social Security can be subject to federal income tax. Yes, even though the proceeds are the result of taxes they’ve already paid, the return they’re receiving is also taxed. Double taxation? Yes.
Since many folks entering into their retirement benefits years are not fully aware of this disturbing phenomenon, this forbes.com post by Senior Contributor Kelly Phillips provides a good recap of how this tax is determined and the steps to follow to report and pay it. Read Ms. Phillips’ post here…