http://www.joetaxpayer.com/social-security-benefits-ii/ Financial Commentary For The Average Joe Thu, 11 Mar 2010 21:18:54 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://www.joetaxpayer.com/social-security-benefits-ii/comment-page-1/#comment-1112 Dave Wed, 03 Sep 2008 14:27:11 +0000 http://www.blog.joetaxpayer.com/?p=151#comment-1112 One thing that Scott Burns often mentions which I haven't seen discussed much elsewhere is that the "Social Security Tax Trap" catches more and more retirees each year. That is because the cutoffs for when SS benefits begin to be taxed are not indexed to inflation. I am 33 and by the time I retire, if the indexes are not adjusted to compensate for inflation, my SS benefits alone will be enough to force some of them to be taxed, even without any additional income. In a way this simplifies retirement tax planning (but not in a good way). One thing that Scott Burns often mentions which I haven’t seen discussed much elsewhere is that the “Social Security Tax Trap” catches more and more retirees each year. That is because the cutoffs for when SS benefits begin to be taxed are not indexed to inflation. I am 33 and by the time I retire, if the indexes are not adjusted to compensate for inflation, my SS benefits alone will be enough to force some of them to be taxed, even without any additional income. In a way this simplifies retirement tax planning (but not in a good way).

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