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. Even 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 $59K & $75K - so many that are taxed now would not be taxed on their SS benefits.
This is costing middle class retirees billions of dollars every year.
This is historical material “frozen in time”. The website is no longer updated and links to external websites and some internal pages may not work.
