You may need to pay Income Taxes on a portion of your Social Security benefits, based on your Income. But knowing the Rules can help you minimize your Income Taxes as much as The Law allows.
Don’t needlessly over-pay your Income Taxes !
Whether or not your Social Security benefits are taxable depends on your
“ Provisional Income.”
- Provisional Income is calculated by taking your Adjusted Gross Income (AGI), not counting Social Security benefits, and adding in nontaxable interest ( e.g. : Tax Free Bond income ), and half ( 50% ) of your Social Security benefits.
- If your Provisional Income is below $25,000, and you file taxes as Single or Head of Household, or below $32,000 if you file a Joint return, you won’t owe any Income Taxes on your Social Security benefits.
- If your Provisional Income is between $25,000 and $34,000 and you’re Single, or between $32,000 and $44,000 and you file Jointly, up to 50% of your benefits may be taxable.
- If your Provisional Income is more than $34,000 and you’re Single, or more than $44,000 and you’re married filing Jointly, up to 85% of your Social Security benefits may be taxable. 85% ! Ouch !
- Financial Matters can get complicated. Retirement Rule #1 : Seek out Professional help. It’s the IRS and Income Taxes, so you don’t want to make any mistakes. Don’t tug on Superman’s cape with the IRS.
- Important : Social Security decisions are irrevocable after 12 months. So “ Do It Yourself “ is a really Bad Idea for Your Retirement Planning.
Call Fraser Allport, your Florida DROP Specialist,
to obtain your Complimentary copy of :
“ The Social Security Benefits Planner –
Income Taxes and Your Social Security Benefits. “
Fraser Allport is a Fiduciary, an Investment Advisor, and a Certified Estate Planner™
with 37 years of experience in Financial Services.
Fraser is an Independent, and the Firm’s Owner.
Call Fraser Allport, your Florida DROP Specialist, at 386.882.6256 for your
Complimentary Consultation about your DROP, Social Security, Medicare,
Income Tax, Retirement and Estate Planning questions.
After 37 Years in Financial Services, Fraser is The Total Advisor ™ –
An experienced and independent Fiduciary for all your financial needs.
Call Fraser for answers. It’s a Complimentary Consultation.
- Fraser can help you with the very first steps that you must take to exit your DROP.
- Fraser can help you meet the dates and deadlines for filing your DROP Exit forms.
- Fraser can help you determine what forms are needed, and help you complete them.
- Fraser can help you with independent choices for wisely investing your DROP Rollover money.
- Fraser can help you optimize your un-used Sick Days and Vacation Days in your DROP.
- Fraser can help you maximize your Social Security benefits for you and also for your Spouse. Note: Social Security decisions are irrevocable after 12 months.
- Fraser can help you with your Health Insurance, Medicare, Home and Long Term Care choices. Most Long-Term Care occurs in your Home.
- Fraser can help you coordinate your Retirement Plans with your Spouse’s Retirement Plans. You and your Spouse want to be in synch about Retirement.
- Fraser can help you legally reduce your Income Taxes in Retirement. This can save you mucho money over the rest of your Life. Don’t over-pay your Income Taxes.
- Fraser can help you with your Estate and Legacy Planning. Fraser is a Certified Estate Planner™. Leave A Legacy, not A Mess.
- Fraser can help you Get Your House In Order with Wills, Trusts, Powers of Attorney, A Living Will, Health Care Directives, Final Expenses, etc.
- Fraser can help you with a Home Health Care Plan, customized for you. Act now, while your health still qualifies. Home Health Care is the future of Long Term Care.
Your DROP Plan is your Retirement Nest Egg.
Safeguard it by getting Smart with your Money.
Remember the two Golden Rules of Investing:
1) Don’t Go It Alone. Seek out Professional help.
2) It’s Never Too Early to Plan for Retirement.
These are Big Decisions for You ... with really Big Consequences.
As You Retire, You are about to make some of the most important
financial decisions of Your entire Life : Social Security, Medicare,
Estate Planning, and what to do with Your DROP Lump Sum.
Be Smart with Your Money, because it’s Your Nest Egg
and Your Retirement is at stake here. Lifetime decisions.
Make certain you are prepared for Retirement ...
and prepared for Longevity.
Thanks to Kimberly Lankford at Kiplinger.com.