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.