Gloria Christie Reports
"SOCIAL SECURITY TAXES GROSSLY UNFAIR" The Newsletter for Intelligent Women & Men
Individuals who receive Social Security may be facing double taxation. Significant cost of living increases, especially the the 2023 40-year-high 8.7 percent increase, have bumped people over the cutoff for income taxes. Experts call this a “stealth” tax, according to Yahoo Finance.
Senior Lead Planner Jordan Gilberti, who is also Facet's Certified Financial Planner spoke to USA Today said:
“This is a stealth tax. Everyone knows Social Security gets taxed, but rarely do they see how it’s taxed. People’s jaws would fall to the ground.”
The $25,00 taxation threshold if adjusted for inflation would be $73,000 for individuals and $93,200 for couples.
Senior Citizens League Social Security and Medicare Policy Analyst Mary Johnson commented:
“When they’re considering changes to Social Security and Medicare, they’ve never, ever turned to senior constituents or advocates as individuals to sit on commissions or in on negotiations. We’ve never been invited to the table.”
GOBankingRates reported:
“Individuals with provisional income above $25,000 and joint filers above $32,000 have up to 50% of their Social Security income taxed. For individuals with provisional income above $34,000 and joint filers above $44,000, up to 85% of Social Security is taxed.”
Yahoo Finance reported more details about the “stealth’ taxes:
“Provisional income includes your gross income, tax-free interest from bonds and other sources, and 50% of your Social Security benefits, USA Today reported. For example, if you have $50,000 in income and receive $1,500 a month from Social Security, you’ll pay taxes on 85% of your $18,000 in yearly benefits, or $15,300.”
Perhaps older Americans and those with disabilities receiving Social Security would do well to talk to their Washington elected officials.