Lately, there’s been a lot of chatter online about retirement taxes.
While we understand the hope behind some of these claims, the truth is: nothing has officially changed at the federal level. However, there are ways you can reduce your tax burden.
Today, we’ll cover the specifics of federal and state taxes, as well as strategies you can use to reduce your tax bill in retirement.
Social Security and Retirement Taxes: Federal, State, and Beyond
Up to 85 percent of your Social Security benefits can still be taxed, depending on your income, although a $6,000 federal deduction may help reduce that amount. In addition, seniors who receive this deduction will only do so for a few years. The Motley Fool dives deeper into the details here.
That said, where you live can make a big difference. Currently, only nine states tax Social Security benefits, and one of those is already phasing them out. Most states do not tax these benefits at all, which can make retirement more affordable and more secure.
If you’re looking to keep more of your benefits, here are a few proven strategies:
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Roth accounts provide tax-free withdrawals in retirement.
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Delaying benefits may improve your overall financial picture.
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Staying below certain income thresholds can reduce how much of your benefits are taxed.
You’ve worked for these benefits, and you deserve to enjoy them! That’s why we’re not only sharing tax tips, we’re also supporting a national petition to raise Social Security benefits across the board. No matter your income or location, you should be able to retire with confidence.
In a time when it’s easy to be misled or overwhelmed, we’re here to cut through the noise and help you protect what’s yours.
Help The Seniors Center Protect the Future of Social Security
The Seniors Center is committed to finding solutions to strengthen and protect the Social Security Trust Fund. Social Security is a contract between citizens and the government. Money deposited in the Trust Fund should only be used to pay benefits to eligible recipients.
The Seniors Center is demanding Congress finally put a stop to the careless borrowing and spending by greedy politicians that has put our Trust Fund and our secure retirement in jeopardy.
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! And follow The Seniors Center on Twitter and Facebook for more updates!
