Ep 17: Do You Have to Pay Taxes on Social Security Benefits?

Let’s wrap up our four-part series on Social Security misunderstandings by talking about the dreaded ‘T’ word. After years of paying the government, you might not think that you have to send more money their way when you start claiming your benefits. We’re going to clear up that subject today by explaining how taxes are calculated for an individual’s Social Security and how we work with our clients to lessen that burden.

 

Show Notes and Additional Resources: https://www.baschrock-fg.com/podcast/ep-17-do-you-have-to-pay-taxes-on-social-security-benefits/ 

 

Today's Rundown: 

0:35 – What goal has Ben set for 2020?

1:59 – Previewing our discussion on taxes.

2:26 – In the News: Charles Schwab announced they’ll soon allow clients to buy and sell fractions of stocks. Why would a person want to do this instead of buying an entire share?

4:05 – In the News: A Pennsylvania couple is facing felony charges after their bank accidentally put $120K into their account and they went out and spent it all.

6:25 – On to the main topic on Social Security. The misunderstanding is that you don’t have to pay taxes on Social Security benefits. 

6:48 – Anywhere from 0-85% of your benefits can be viewed as taxable income.

7:28 – So how can we determine what our personalf tax obligations are going to be?

10:00 – Not every state taxes Social Security. Ohio is one of those states.

10:25 – What are some ways we can offset taxes to decrease the amount we’ll pay?