What the 2023 COLA could mean for taxes on benefits
Lorie Konish of CNBC suggests that some strategic planning may be in order for many seniors in 2023. That’s because the 8.7% cost of living adjustment (COLA) appears poised to throw some retirees over the threshold where income tax now kicks in for Social Security benefits. She explains what the brackets are and that they have not ever been indexed for inflation since income taxes were first imposed in 1983. Still, there may be room for some beneficiaries to increase their retirement withdrawals while still not incurring a tax liability on their benefits. Full piece here.