Most Retirees don't know that Social Security Benefits Can Be Taxed?
According to the Social Security Administration, approximately 40% of the 57.9 million people who receive Social Security Benefits pay income taxes on their benefits, during 2014 more than $29.6 billion was collected in tax on Social Security Benefits. The Shocking thing, most retirees are not aware of how this tax is calculated or the fact that up to 85% of Social Security retirement income can be taxed each year! The calculation used to determine the amount of Social Security benefits subject to taxation has not changed since 1983; more specifically the income break points used for this calculation have not been indexed to inflation for over 32 years.
We can show you how to reduce or eliminate the tax on Social Security benefits click here to run a free calculation.
If you are a financial professional, our Social Security Tax calculator Pro was designed to show clients how to realize a potential increase in net spendable income by identifying & repositioning certain taxable income sources into Tax Advantaged Accounts like Annuities and Single Premium Life Contracts.