The $25,000 Line That Taxes Social Security Has Not Moved Since 1984. A $2,170 Check Plus a $12,000 Pension Crosses It

详细摘要

Congress set a tax trigger for Social Security benefits when Reagan was president and never adjusted it, while your checks keep growing. Find out how a modest pension can quietly pull your benefits into taxable territory, and why a temporary deduction may not protect you much longer.

Many people look forward to claiming Social Security in retirement. But some retirees end up with a big shock when they realize that they aren't eligible to keep their Social Security checks in full.

The reason boils down to a decades-old formula that determines whether Social Security benefits are subject to taxes or not. And as benefits increase over time, more seniors are likely to end up losing money to taxes.

Years ago, Social Security found itself deep in the throes of a financial crisis. Congress had to act to prevent program cuts, so reforms were implemented to allow for the taxation of benefits.

Since 1984, a provisional income of $25,000 for single tax filers has meant that a portion of Social Security benefits can be taxable. Provisional income is calculated as the total of adjusted gross income, tax-exempt interest income, and 50% of annual Social Security benefits.

文章开头，摘自Yahoo Finance。如需阅读全文，请前往媒体网站。