Many middle class retirees are being overtaxed on Social Security benefits because the same low base for the calculation of taxable benefits has not been adjusted for inflation in over a quarter century. Keep in mind - if this doesn’t affect you today, it will when you retire unless this is changed.
For a single person - if half your Social Security benefits plus other income is under $25,000, you do not pay Federal Income Tax on any of your SS benefits. This number is $32,000 for couples. These $25K/$32K levels have not been adjusted since written into tax law in 1983.
If this had been adjusted for inflation, the levels would now be approximately $52K & $67K - so many that are taxed now would not be taxed on their SS benefits.
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