For seniors, retirement should be a time to relax. After working hard for years, retirees deserve to enjoy time with loved ones and time doing what they love. Unfortunately, taxes and other realities of life can get in the way.
A certain progressive income tax can target seniors, making it difficult for those who are already on fixed incomes to afford what they need. Learn more about this progressive tax today and find out how you can help protect the future of Social Security.
What Is a Progressive Tax?
A progressive tax increases as a taxpayer’s income increases. Higher-income individuals will pay more as a percentage of their earnings in taxes than lower-income individuals. Certain types of taxes, like property taxes or taxes on luxury goods, are likely to impact more wealthy individuals.
For seniors, one tax to be concerned about is the tax on Social Security benefits. According to The Hill, “If seniors who have reached the full retirement age continue working, or if they have other sources of income…they may have to pay income taxes on part of their Social Security benefits.”
Seniors who make “too much” according to the government could lose up to 85 percent of their Social Security benefits to this tax.
Will This ‘Tax Double-Whammy’ Impact You?
Not sure if you’ll be impacted by this double tax? Check if the below applies to you:
- You are of full retirement age (you can check here)
- You either receive an income from a job or pull from savings totaling more than $25,000 per year
- You’re receiving Social Security benefits
If all of the above apply, you could see this progressive tax making a dent in your Social Security benefits.
Help The Seniors Center Protect the Future of Social Security
At The Seniors Center, our goal is to help seniors, and we’re doing that by protecting the future of Social Security. Retirees shouldn’t have to worry about losing their hard-earned benefits to taxes or the agendas of greedy politicians. If you agree, we invite you to sign our petition today!