In a post about reading your Social Security statement a few weeks ago, reader J. Shoe asked the following question:
Just trying to find out if it is true that any Soc. Sec. benefits you start taking are taxed starting at 50% of the money you receive. So that if you take 5K from SS in one year, they put a tax on 2.5K of that money. Can that be real and their a link to see this horrific scam. It’s bad enough they borrow from SS without the intention of paying it back, but this crazy
I don’t see how it’s crazy but I also didn’t fully understand how Social Security benefits are taxed. For more information, I turned to Pub 915: Social Security and Equivalent Railroad Retirement Benefits, which is the IRS document that explains everything.
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