Monday, June 8, 2015

You Could Eliminate Taxes from Your Social Security Benefit Checks by Shuffling Your Other Income

You Could Eliminate Taxes from Your Social Security Benefit Checks by Shuffling Your Other Income

Yes, it’s possible to collect every last penny of your Social Security retirement checks, completely tax free. But that depends on “where” your other income is coming from.

As the principal of a retirement planning practice, I can confidently tell you – without the need to reference any formal study – that one of the major issues on the list of every single retiree who consults with us is finding ways to reduce the enormous tax bill they face, year after year.

You obviously understand why this is such a huge thing. Who wouldn’t want to keep as much of his or her money as possible, especially in retirement? Personally, I think there’s a much bigger issue at stake, because the overwhelming majority of the folks I’m referring to here don’t consider themselves to be in a higher income bracket, by any measure. So why in the world will paying too much taxes even become an issue? Let me answer it this way: it is one of those “mysteries” that most folks have to literally experience to believe.

The unfortunate truth here is that more and more unsuspecting folks are meeting a nasty surprise as they enter their retirement years. Many Americans seem to be under the mistaken impression that just because they expect to have less income in retirement, their tax bill will shrink, too. It would certainly be great if that were, in fact, the case. But it’s not, at least based on what I see happening in real life, to real people, every day.

One huge blind spot, for lack of a better word, surrounds the way Social Security retirement checks are taxed: in general, if one-half (50 percent) of your Social Security benefits, plus your other countable (note the keyword countable) sources of income amount to more than $25,000 (if you’re single) or $32,000 (if you file jointly with your spouse), up to 85 percent of your Social Security benefit checks may be subject to taxes, on top of and in addition to your other taxable income.

I certainly haven’t met everyone out there, but I’m fairly confident that single folks with the $25,000 base threshold or couples with the $32,000 base threshold wouldn’t consider themselves candidates for paying taxes on their Social Security retirement checks – until they literally experience it.

Here’s some great news! The IRS formula that is used to determine the taxable portion of Social Security benefits does not count income from certain specifically designated sources/accounts. So, in simpler terms, there’s the possibility that by simply reshuffling “where” or “from which account” your non-Social Security income is coming, you may be able to completely skip the tax on your Social Security benefit checks.

Really? Yes, really!

Our latest special report, Skip the Tax, breaks down the rules and also provides suggestions about how you can position yourself to reduce to the bare minimum – or wipe out altogether – any tax from your Social Security checks. You are welcome to grab your complimentary copy HERE.
If you'd like to learn more about how to reduce your tax bill in retirement, visit or call 877.656.9111 right now to book your complimentary session with a seasoned financial professional with a proven track record who can help you create the financial future you desire.

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