Many people are surprised to learn that their Social Security retirement benefits might be subject to federal income taxes.
Many Americans are surprised to learn that they can be taxed on their Social Security retirement benefits as explained in My San Antonio’s article: “Will I Pay Taxes on My Social Security Benefits?” People believe the money they receive was already taxed when they paid into the system.
As a result, to tax it again amounts to double taxation.
However, the federal government views it differently.
The total amount most people pay into the system equals 15% of the total value of lifetime benefits. As a result, up to 85% of Social Security benefits can be taxed and it will not be double taxation.
But not everyone is required to pay federal income taxes on their benefits. It depends on the other income a person makes.
The basic rules are as follows:
Additionally, in 13 states Social Security benefits are subject to state income taxes.
Reference: My San Antonio (March 20, 2016) “Will I Pay Taxes on My Social Security Benefits?“
I heard Cindy’s presentation at a Senior Luncheon at my church, and was very impressed. She helped my daughter and me understand many aspects of elder law. Josh has also been very helpful in my planning to enter an independent living situation . I have told many friends about them.
The very best elder law attorney and staff anyone could ever ask for! I have referred a number of clients to Cindy and she never disappoints. She is kind, caring, and extremely thorough in making sure everything is completed as it should be. I highly recommend Cindy for anyone needing lawyer services; she truly goes above and beyond for every client she helps and has had a huge impact in so many peoples’ lives. Thank you, Cindy and staff, for everything that you do- I’m so glad to know you!
Cindy and the Nelson Elder Care Law team are trustworthy and helpful. They are the experts in elder care law. At Leaf Cremation, we entrust our families to the care of the Nelson team when their services are needed.
Josh Nelson, and his staff, have been amazingly helpful to our family. The ins and outs of nursing homes, the rules and regulations that govern Medicare and Medicaid are daunting and the folks at Nelson Elder Care Law have been informative, responsive, and above all, empathetic. I cannot emphasize enough how their service has taken a weight off of our shoulders especially during a world pandemic that has targeted nursing homes across our country. I highly recommend retaining Josh and his firm!
I had a simple legal question to them that I needed answered and they very helpful in giving me the information I needed. I highly recommend them and will reach out to them if I need more advice or assistance. Thank you for taking your time to just answer a couple of questions I had!