Taxes on Social Security Benefits

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When social security benefits were first created, they were not taxed, but changes in the tax law make it so that most individuals are now taxed on about 85 percent of their social security benefits. Hire a tax consultant to help get around some of the tax rules on social security with advice from a registered financial consultant in this free video on social security.

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Video Transcript

Social Security was first started by Franklin Delano Roosevelt, one of our greatest presidents in The United States, and it was meant as a benefit, not to be taxed to the American public. However, in basically in the eighties, 1981, taxes occurred at a fifty percent level when individuals met certain benchmarks. And in 1993, under the Clinton Omnibus Reconciliation Act, American taxpayers who made over forty four thousand dollars a year are taxed at eighty five percent of their social security benefit. That's where most individuals currently sit. There are ways to avoid this if you use the appropriate in investments such as annuities and things of that nature, and working with a financial advisor that knows how to read a tax return is always of great benefit to you. Many senior Americans do not want to be taxed on their social security benefit, and like Franklin Delavo Delano Roosevelt said it's not intended as a tax resource. This is Patrick Munro, talking about the taxes on social security benefits.


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