The second right of our bill indicates that Social Security benefits may “no longer be taxed as income.”

Such taxation is harmful to many senior citizens, especially as more and more financial responsibilities are shouldered by seniors. These additional responsibilities call for seniors to acquire more finances. With each additional dollar earned, seniors are more likely to have a larger percentage of their benefits taxed as income.

Filing Status And Limits

According to this article, the amount of Social Security benefits that will be subject to income taxes depends on two things: 1) how individuals file their taxes, and 2) their combined income for the year.

For those who file their taxes under the single status:

• Any combined income between $25,000 and $34,000 can mean an income tax on up to 50 percent of their benefits.
• And a combined income greater than $34,000 can lead to 85 percent of their benefits taxed as income.

For senior citizens who file as married or joint, the combined income shifts a bit:

• If the combined income is between $32,000 and $44,000, up to 50 percent of an individual’s benefits can be taxed.
• This percentage jumps to 85 percent for anyone whose combined income is greater than $44,000.

The article further explains that there are methods for avoiding a large income tax on Social Security benefits.

More Financial Responsibilities

The combined income may seem like a lot, but senior citizens continue to take on more and more financial responsibilities. The increase in financial responsibilities, whether due to the decline in pensions offered or the rise in healthcare costs, can cause senior citizens to seek out additional earnings.

These additional earnings may be needed, but they also increase an individual’s combined income. And with this increase, seniors are more likely to be subjected to a larger income tax on their hard-earned Social Security benefits.

Help Provide More Financial Security for Seniors

Senior Security Alliance recognizes that every penny of their fixed monthly income is essential for senior citizens’ comfort. That is why we are urging the politicians in Congress to take action, pass our bill, and help protect senior citizens by stopping the taxation of benefits as income.

Help us create a more financially secure future for seniors nationwide by signing our petition and taking much needed action now.