Social Security is a key part of most retirees' financial
plans, and many are surprised to find out that in certain
situations, Social Security benefits are subject to tax. But
thanks to one little-known provision of the tax laws,moreretirees
will pay taxes on Social Security in future years.
In the following video, Dan Caplinger, The Motley Fool's
director of investment planning, explains how the rules governing
Social Security taxation make it a certainty that more retirees
will gradually pay higher taxes on their benefits. Dan notes that
Social Security taxes are determined by adding up half your
Social Security income plus most of your other income sources. If
those amounts are above $25,000 for single filers or $32,000 for
joint filers, you'll include part of your Social Security
benefits as taxable income. But as Dan points out, those income
limits aren't indexed for inflation, so more people will
gradually land above those limits as income levels rise
Be smart about your Social Security
You can't afford to let the IRS take away any more of your
Social Security benefits than is absolutely necessary. In our
brand-new free report, "
Make Social Security Work Harder for You
Make Social Security Work Harder for You," our retirement
experts give their insight on making the key decisions that
will help ensure a more comfortable retirement for you and your
Click here to get your copy today.
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