Taxes on Social Security

Did you know you can be taxed on your Social Security? 
This usually only happens if you have other substantial income, such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return, in addition to your benefits.
The portion of your Social Security income that’s subject to federal income tax, depends on your combined income. Combined income is your taxable and non-taxable income, plus half of your Social Security benefits. If that income is between $25,000 and $34,000 on a single return or between $32,000 and $44,000 on a joint return, up to 50% of your benefits can be taxed. If your combined income is more than $34,000 on a single return or $44,000 on a joint return, it’s likely that up to 85% of your benefits will be taxed.
Once you start collecting Social Security, you may be able to reduce your overall tax bill by carefully planning which accounts you spend from each year to minimize the portion of your Social Security benefits that will be taxable. If you have questions call 855-22money or go to the website yoursafemoneyshow.com.