Many retired Americans find Social Security benefits confusing, especially when trying to understand possible tax consequences. In fact, retirees could face paying taxes on up to 85% of their Social Security benefits because combined income from Social Security and other income streams can quickly push them above the thresholds for taxes to apply. Additionally, the number of beneficiaries who are required to pay Social Security income tax is rising, and it will continue to grow. With more people impacted, advisors must make sure they clearly explain — or show — how these benefits are taxed.
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