Maintaining a steady income stream throughout retirement is as essential as earning said retirement income. This income may come as investments, saved retirement, Social Security benefits, and more. Unfortunately, there are also many ways you can lose or severely impact your benefits. Aside from scams designed to target senior citizens amid retirement, there are several ways you may inadvertently lose some of your Social Security benefits. State and federal taxes are two aspects of Social Security benefits that are often overlooked. Currently, there are 12 states in the US that tax Social Security benefits, which means you have to pay taxes during retirement. The remaining 38 states, however, do not tax your benefits. When a substantial income level outweighs your benefits, the collective income may be subject to federal taxation. This income may comprise investment interest, self-employment, dividends, additional wages, and more. Whether or not you pay federal taxes will depend on your combined income level. Unpaid debt may cause the US treasury to garnish some of your Social Security benefits, depending on the level of outstanding debts. This includes spousal support, back taxes, or even a federal student loan in default. When it comes to the IRS, they can garnish your benefits without a court order. In fact, up to 15% of your Social Security benefits may be garnished away if you owe federal taxes. Excessive earnings may affect your expected Social Security benefits during retirement, especially if you claim benefits while continuing to work. Though some individuals have a good reason for doing so, working while claiming Social Security benefits may reduce your benefits overall. The total amount reduced depends on when you reach full retirement age (FRA) and when you begin claiming said benefits.
Contact Information:
Email: [email protected]
Phone: 9143022300
Bio:
My name is Kevin Wirth and I have worked in the financial services industry for many years and I specialize in life insurance and retirement planning for individuals and small business owners, with a specialty in working with Federal Employees. I am also AHIP certified to work with individuals on their Medicare planning. You can contact me by e-mail or phone. I look forward to the opportunity of working with you on these most relevant areas of financial [email protected] 914-302-2300
