Taxes on Social Security

A Simplified View

How much you owe in taxes on Social Security income can be a big shock.

I clearly remember that it was one of my Dad’s biggest retirement surprises. He didn’t expect to pay so much in taxes. Yet there it was…a big tax bill in the first year of retirement. Like a lot of other retirees, he didn’t know that up to 85% of his Social Security benefit could be counted as taxable income.

Social Security Tax

Ultimately, we were able to mitigate some of his tax burden, but for some of it, he was stuck.

He didn’t like it and he’s not alone.  Every year individuals retire and are faced with sticker shock when they find out how much they’ll have to pay in taxes on Social Security income. To some, it doesn’t seem fair. You’ve worked for years and paid your Social Security tax as the admission ticket to a Social Security benefit. Now that you’re collecting that benefit, you have to pay taxes?  Again?

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Quantifying The Enormous Value of Your Social Security Income

Quantifying the Value of Social Security Income

If you had to replace your Social Security income, how much would you need? It’s probably more than you think.

The fact is, the income you receive from Social Security may deserve more respect.  For all the years that I’ve helped folks with retirement planning, Social Security income is the only income stream that I’ve seen with the following attributes:

  • It’s adjusted almost every year for inflation
  • It’s not 100% taxable
  • It’s backed by the US Government
  • It will pay you for as long as you live

That’s a long string of benefits for one income source. But back to the question; how much would you need to replace your benefit?

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Texas Long Term Care Medicaid Explained

Answers To The Most Frequently Asked Questions

Seniors holding hands
Long Term Care Medicaid is the federally mandated program that provides access to skilled nursing care for individuals who meet certain requirements.  Although Medicaid is a federally created program, the actual administration of that program is left to the individual states. Because of this division between federally created rules and state administration, there are many specific differences between the states, although the overall rules are generally the same.  Also, the rules change frequently, so from the time a reader starts this article, the rules may change before they even finish the article.  As a result, the following information is for general knowledge and should not be relied upon without the advice of an expert in elder law.

There are a bevy of misconceptions related to Long Term Care Medicaid.  In fact, it is common for families who could be eligible for Medicaid to incorrectly assume that they do not qualify, even before they know the rules.  Even more often, individuals and families will attempt to “plan” for their future Medicaid needs by acting on rumor and the advice of family, neighbors and friends.  Most often, these people find that not only have they acted incorrectly, but that their attempts at “planning” have actually caused more problems than they solved.

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6 Easy-To-Understand Social Security Basics Everyone Should Know.

We’ve all heard that Social Security is really complicated.  In many cases, it is!  However, I’ve found that 80% of the questions are answered with one of the six Social Security basics that everyone should know.

Social Security Basics

For the past three years, studying Social Security has replaced most of my hobbies.  I’ve never considered myself overly academic, but I’ve really enjoyed this pursuit.  But just when I think I have a firm grasp on the program, I learn a new rule that blows my mind.

This shouldn’t surprise me though.  The Social Security Administration has nearly 3,000 rules and a 108,000 page website to filter through when seeking information.  When I first started, this massive website and rule book  felt like drinking from a fire hose.  It was just too much information.  But after spending the last three years studying, speaking and writing on Social Security, I’ve learned that most questions can be answered within one of the six Social Security basics.

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