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Who Taxes Social Security Benefits?

It’s a rude awakening to find out you owe federal income tax on some of your Social Security benefits.  Since the thresholds were never indexed for inflation in 1983 and 1993, more taxpayers are ensnared each year.  But thirteen states also tax Social Security benefits.  Dan Caplinger lists the 13 and notes that one state just began to phase in tax-free treatment for Social Security benefits.




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