Eighty Five Percent, Fifty Percent, Two Percent discussed on KTAR

KTAR 92.3FM
| KTAR 92.3FM

Automatic TRANSCRIPT

Dot net and on our website we have podcast of this show we have articles we have videos on a variety of topics that i think you'll find interesting with regard to retirement planning and all those kinds of things so moneymatters dot net is our website now i wanna talk with you about a topic that comes up almost with every single client and every time we meet and that is social security and this week wanna talk with you about how eighty five percent of your social security could be taxed the deal is that that eighty five percent now i want to clarify okay when i say eighty five percent i don't mean they're going to take away eighty five percent of your social security what it means is that they're going to tax they're gonna count eighty five percent of your social security benefits as taxable income okay just like you earned it as a wage and then they tax the wage they tacked your social security benefit so let me go over with you the rules on that so that you are aware social security taxes are based on what's known as your provisional income and you know at the seminars that we do we you know i've asked people in the room how many of you know what your provisional income is when it comes to figuring out whether you're going to have your social security benefits taxed or not and i would say about two percent of the room raises their hand out of every hundred people only to raise their hand but anyway so your provisional income so the provisional income is your adjusted gross income which is the number at the bottom of the front page of your tax return okay it's that plus any tax free interest that you have okay so if you tax tax free municipal bonds etc plus fifty percent of your social security benefits if you have.

Coming up next