Could another dollar of retirement income cause more of your Social Security to become taxable?
Possibly—and the reason is a calculation called combined income.
Combined income generally includes:
• Your adjusted gross income
• Tax-exempt interest
• Half of your Social Security benefits
As combined income rises, a larger portion of your Social Security benefits may be included in taxable income—up to 85%.
Important: This does not mean your benefits are taxed at an 85% tax rate.
Swipe through the seven slides to see how the calculation works and why withdrawals, interest, and other income sources may affect the result.
Save this post for later, and follow DW Financial Group for straightforward retirement education.
This information is educational and based on federal rules. State taxation differs. Consult a qualified tax professional regarding your circumstances.
Swipe through the slides to see how combined income works—and why an income decision that seems unrelated may affect the taxation of Social Security benefits.
Save this post for future reference, and follow DW Financial Group for straightforward retirement education.
Educational information only. Federal and state tax rules may change and may apply differently to individual circumstances. Consult a qualified tax professional for personalized guidance.
#SocialSecurity #RetirementTaxes #CombinedIncome #RetirementPlanning #RetirementIncome
#SocialSecurity #RetirementTaxes #CombinedIncome #RetirementPlanning
