EDU Articles
Learn about investing, trading, retirement, banking, personal finance and more.
Are Social Security Benefits Taxed?
Many people do not realize that their Social Security Benefits may be taxed.
If you have a taxable income in retirement above a certain threshold, up to 85% of your social security benefits can be taxed. The calculation for the threshold income actually includes half of your social security benefits.
Whether or not you trigger taxation on your benefits will depend on your “combined” income, which is a sum of your adjusted gross income (taxable income, which can include taxable sources such as qualified retirement plans), your nontaxable interest (from Muni bonds in particular, Roth IRAs are excludable), and half of your household Social Security benefits.
If your combined income is between $25,000 and $34,000 (as an individual) or $32,000 to $44,000 (filing jointly), you may pay taxes on up to 50% of your benefits. If your combined income is over $34,000 (as an individual) or over $44,000 (for joint filers), you may have to pay taxes on up to 85% of your benefits.
It is notable that these threshold limits have not been adjusted for inflation in quite a while, and they may never be, especially since the Social Security system is starting to experience negative cash flows.
It’s definitely important to find out what percentage of your Social Security may be taxed so that you’re able to plan ahead.
When Can I Start Receiving My Social Security Benefits?
What are Federal Tax Brackets?
Can I Withdraw Money From My Cash-Balance Plan?
It’s not likely that a cash-balance plan will allow for early withdrawals. Generally speaking, you can’t withdraw money
How Do I Invest Money in My Cash-Balance Plan?
Employees do not have control of their own accounts in a Cash Balance plan, but they can possibly influence contribution
What is the Best Age to Start Receiving Social Security Benefits?
Generally speaking, the closer you are to age 70, the better. But everyone will need to take all options into account
What is a Cash Conversion Cycle?
A business with a fast ‘cash conversion cycle’ can efficiently use funds to fulfill the different needs of the business
What is Contribution Margin?
Contribution margin measures how efficiently a company can produce a good relative to its variable cost
What is a Long Squeeze?
A long squeeze is when shareholders feel the pressure of falling prices and themselves sell, causing the price to fall
Who is an activist investor?
Activist investors buy enough voting shares to influence the decisions of a company, sometimes for political reasons
What is Receivables Turnover Ratio?
Receivables Turnover Ratio gives a snapshot of how well a company does by extending credit
What is foreign aid?
Foreign aid constitutes one of the major forms of asset transfer between different parts of the world
What is the Falling Wedge (Bearish) Pattern?
The Falling Wedge pattern forms when prices appear to spiral downward, with lower lows and lower highs