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FEDS RAKE IN MONEY FROM TAX ON SOCIAL SECURITY BENEFITS

FEDS RAKE IN MONEY FROM TAX ON SOCIAL SECURITY BENEFITS

The Congressional Budget Office has estimated that the income taxes on social security benefits will cost retirees $51 billion in 2014. About one-half of social security recipients have to pay tax on their monthly benefits and the average tax rate is 6 ½%. Of course, higher income taxpayers, those with income from other sources, pay a much higher rate on their benefits, up to 33%. Who gets taxed? If your income is between $25,000 and $34,000, up to 50 percent of your benefits may be subject to tax. For incomes over $34,000, up to 85 percent of your benefits may be taxable. For more information, see http://www.cbo.gov/publication/49948.