If you combine Social Security benefits with other retirement income, your total income can push you over the pre-determined threshold, and your benefits can be subject to federal income tax. In fact about 56% of beneficiaries will owe federal income taxes on their benefits according to the Social Security Administration. In this article for The Street, Covisum® Founder and President, Joe Elsasser, CFP® outlines how Social Security benefits can become taxable and how you can determine how much you'll owe.
"It’s important to note that compared to other income, Social Security has a significant tax-advantage. At worst, 85% of benefits are taxable and 15% are tax-free."
Read the article in its entirety here.
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