“Social Security: 3 Reasons Why Record COLA Increase in 2023 Could Backfire on Seniors”

“Social Security: 3 Reasons Why Record COLA Increase in 2023 Could Backfire on Seniors,” GOBankingRates


Quote:

“Seniors with additional income from interest, dividends, investments or earned income could have to pay taxes on their Social Security benefits for the first time. Seniors who are married, filing jointly, and earn more than $44,000 for the year could have to pay taxes on up to 85% of their benefits, according to the SSA. Those who earn between $32,000 and $44,000 may be taxed on up to 50% of their benefits. Individuals earning $25,000 to $34,000 may see 50% of their benefits taxed. Those making more than $34,000 could have to pay taxes on up to 85% of their Social Security benefits. For those who were close to any of these lines, a large COLA increase could push them over the edge. Unexpected tax bills can cause unnecessary stress for seniors and, ultimately, these individuals would not gain any additional income from the COLA increase.”

 

LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:

What government gives with one hand, it takes away with the other. Net effect: more dependency, less self-reliance, planning and personal responsibility.