Millions of older Americans rely on Social Security benefits. With the rising cost of food and other necessities, including gas prices that have soared to over $4 per gallon across the country, every penny counts. However, according to The Motley Fool, there are a few situations in which you could lose a portion of your Social Security benefits.
Federal taxes – The government taxes a portion of your Social Security benefits if your provisional income — adjusted gross income (AGI), plus any nontaxable interest from municipal bonds, and half your annual Social Security benefit — exceeds certain limits.
State taxes – Eight states — Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont — can tax a portion of seniors’ Social Security benefits.
Garnishment – The Social Security Administration will garnish some of your benefits for unpaid child support, alimony, or restitution. It can also levy up to 15 percent of each Social Security payment for unpaid federal taxes.
Council of Seniors is Here to Help Older Americans
Older Americans worked long and hard and deserve to live a comfortable retirement free from financial strain.
All of us here are Council of Seniors want to improve retirees’ financial futures – and that starts with Congress enacting The SAVE Benefits Act. The passage of this bill can make up for Social Security cost-of-living adjustments (COLAs) that have let you down in recent years. If it passes, $581 will be returned to eligible seniors.
Sign our petition right now to show you’re on board with our effort.