How Social Security Gets Taxed: What You Need to Know (Ep. 54)
Most people think Social Security is straightforward—until taxes show up.
The truth is, what you don’t know about how your benefits are taxed can cost you more than you expect.
In this episode, I explain how Social Security gets taxed and why it hits harder for women filing single later in life. I break down the tax torpedo, walk through real examples, and share strategies to help you keep more of your income in retirement.
Key points:
- What provisional income is and how it determines whether Social Security benefits are taxable
- How even tax-free income sources like municipal bonds can increase Social Security taxation
- The “Social Security tax torpedo” and how small withdrawals can trigger significantly higher taxes
- Why Roth IRAs and strategic withdrawal planning can reduce the overall tax impact
- The importance of early preparation, especially for women who may file as single in later retirement
- And more!
Resources:
Connect with Eric Blake:
- www.TheSimplyRetirementPodcast.com
- Join the Simply Retirement Newsletter
- Ask a Question or Suggest a Topic for the Podcast
- Blake Wealth Management
- YouTube
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