Social Security Tax on our benefits?
Hi…love your columns and I listen to you all on wgn…..I read in the big beautiful bill that SS recipients weren’t going to have to pay tax. Is this true? I was told when I first signed up a year ago that I’d have to fill out form and claim, 7%, 12%, etc…..I picked the lowest because the more money i take out, less to live off of…so curious……
Terry Says
No, that’s not true! They did give seniors a special tax exemption under the BBB — $6,000 per individual or $12,000 on a joint return if you are over 65. This extra exemption might serve to make SS payments non-taxable for some people. But if you have other high income, from a pension perhaps, some of your SS will still be taxable.
Consult with your own tax advisor about how much tax you will owe, based on ALL your income, and how much should be withheld from each deposit next year. But figure it out now, to avoid penalties for under-withholding.
