Money Talks….

Welcome to this issue of Money Talks…. Did you know that your Social Security can be taxed?  Most people don’t know this, what goes into the calculation or what can be done to not have Social Security taxed.

Single:       $25,000-$32,000           taxed 50%

                   Over $32,000                 taxed up to 85%

Married:   $34,000-$44,000           taxed 50%

                   Over $44,000                 taxed up to 85%

What goes into calculation?

-         ½ of your Social Security

-         Rental Income

-         Income from a job

-         C.D. interest

-         Tax Free Muni-Bonds

-         RMD from retirement accounts

-         Interest from investments

-         Pension income

If after you calculate and you are in the above range, Social Security will be taxed.  The thing is that the taxes that are paid do not go back into Social Security, they go into the general fund.

Our next issue we will discuss about tax deferred options.  It could help not pay taxes on your Social Security.

Until next time,

Diane