During retirement, there are five common mistakes some seniors make that wind up costing them the full benefit of Social Security and creating tax issues for them, according to David Rae at Forbes.com. Making any one of these 5 mistakes might have done more harm than good to seniors without them even realizing it.
- The biggest mistake some seniors might have made is if they filed for Social Security earlier than necessary. If they filed between the age of 62 and full retirement age, they won’t receive the full amount possible.
- If they claimed early before full retirement age and kept working, it likely resulted in a reduction in benefits and possible tax issues.
- It’s also important to maximize survivor benefits for those who became a widow or widower before their eligibility age. Consulting a tax professional can help seniors get these benefits.
- A change in marital status also can affect Social Security income. Getting either divorced or remarried might affect potential spousal benefits, depending upon how long a person was married.
- Finally, many people don’t realize their Social Security benefits could be subject to taxation at the federal and/or state level, depending on their overall income level from all sources.
Council of Seniors Works to Protect Social Security
Getting the most in retirement is what motivates Council of Seniors to push Congress to pass The SAVE Benefits Act. Passage of this bill will compensate for the inadequate annual Social Security cost of living adjustment (COLA) in recent years. As a result, eligible seniors will be reimbursed the $581 they deserve.
Take time right now to sign our petition. By showing Congress how many people support this bill we can make this reality. Your help will be greatly appreciated.
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