(FinancialHealth.net) – The federal government requires Americans to pay Social Security taxes throughout their careers. Many of us don’t mind because it goes into a retirement fund. But if you thought it ends there, you may be disappointed.
According to a survey by the Senior Citizens League, 50% of retirees pay income taxes on their Social Security income. The reason for this is the government hasn’t adjusted the earnings threshold for Social Security benefits once since it became taxable in 1984.
The report explains up to 85% of the money is taxed if a person receives income of $25,000, or $32,000 if they’re married. Had the government adjusted for inflation, those thresholds would be roughly $62,900 for single retirees and $80,515 for those who file jointly.
This news comes at a time when Social Security income has lost a shocking amount of buying power.
Social Security Benefits Lose 30% of Buying Power Since 2000
Read more here… https://t.co/sVF9ONuHOy
— Seniors League (@Seniors_League) May 12, 2020
Congress needs to do something about this to help our retirees. It’s not fair they’re losing any of their limited income to federal taxes this late in life, especially if they’re only receiving $25,000 annually. How are they supposed to survive?
~Here’s to Your Financial Health!
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