3 Things Retirees Need to Know About Income Taxes on Social Security Benefits
Good citizens understand that taxes are necessary for the functioning of an effective civil government. But nobody enjoys paying them. Most taxpayers work to minimize their annual income tax bill, in fact, perhaps hoping for a time they won't have to pay any taxes at all.
The thing is, if you made enough money during your working years to regularly pay income tax on your wages, there's a good chance you'll be earning enough money in retirement to continue paying them. Even a portion of your Social Security benefits are automatically included in the IRS's calculation of your taxable retirement income.
Here's a rundown of the top three things current and future Social Security beneficiaries need to know about the potential taxes they'll owe once they've begun accepting benefits.
Source Fool.com
