Social Security Benefits and Taxes

If your income is high enough, you’ll have to pay taxes on some of your Social Security benefits. But you can eliminate or reduce that possibility if you make income nontaxable. Controlling your combined income is key here.

Combined Income = Adjusted Gross Income + Nontaxable Interest + 1/2 Annual Social Security Benefits.

Here are a few things you can do to manage your combined income:

• Keep taxable income low.
• Convert to a Roth IRA.
• Manage your Roth IRA Conversion.

To learn more about these actions, read the full article.

Credit to USA Today, The Motley Fool
How to Avoid Taxes on Your Social Security Benefits
Wendy Connick, Aug 27, 2017