The Fairness of Social Security Benefit Taxations Isn't Cut and Dry
Briefly

from 24/7 Wall St.3 days ago
Many seniors find it unjust that their Social Security benefits are subject to taxation, particularly due to the persistently low income thresholds that haven't changed for decades. This issue is exacerbated by the fact that many retirees depend heavily on these benefits as their main source of income. Taxation begins at a combined income of $25,000 for individuals and $32,000 for couples, with significant portions of their benefits subject to tax. The rules were modified in the past to support the program financially but inadequately reflect current economic realities.
Many retirees are shocked to learn that Social Security benefits are taxable. And what makes matters worse is the low income thresholds at which those taxes apply.
24/7 Wall St.https://247wallst.com/personal-finance/2025/03/25/the-fairness-of-social-security-benefit-taxations-isnt-cut-and-dry/
For single tax-filers, a combined income of $25,000 to $34,000 results in taxes on up to 50% of Social Security benefits.
24/7 Wall St.https://247wallst.com/personal-finance/2025/03/25/the-fairness-of-social-security-benefit-taxations-isnt-cut-and-dry/
The thresholds for combined income were established decades ago and have not been adjusted for inflation since.
24/7 Wall St.https://247wallst.com/personal-finance/2025/03/25/the-fairness-of-social-security-benefit-taxations-isnt-cut-and-dry/
Social Security benefits weren't always taxable. Lawmakers changed the rules decades ago as a way to pump more money into the program.
24/7 Wall St.https://247wallst.com/personal-finance/2025/03/25/the-fairness-of-social-security-benefit-taxations-isnt-cut-and-dry/
Read at 24/7 Wall St.
#social-security #taxes #seniors #income-thresholds #retirement-benefits
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