Retirees are one of the most vulnerable sections of society. It is a pity that there are various ways in which retirement resources might be taxed. A recent survey reveals that retirees may be in for a big surprise this year, reports napa-net.org.
50% of all families receiving Social Security benefits will have to pay taxes on a portion of their advantages. A survey has been conducted by the Senior Citizens League (TSCL). The survey revealed that instead of being reassured about their future, retirees and disabled taxpayers are even unsure about their tax liability this year.
Most Retirees Unsure About Taxes on Social Security Benefits
The survey revealed that more than half the responding retirees did not expect their benefits to be taxed. The remaining respondents were confused and said that they did not know if their benefits would be taxed or not. It is in sharp contrast to earlier survey findings.
The early TSCL survey revealed that a quarter of the respondents said they owe taxes to their benefits. 47% of the respondents said they paid taxes on their Social Security benefits. The survey was conducted last fall after tax season.
There is a big state of ambiguity about the amount of tax put on Social Security benefits. The survey revealed that 42% of respondents said they owe taxes on their social security benefits, and the taxes will be higher than in previous years. The remaining 53% of the polled retirees said they are unsure if the taxes will be higher or lower than last year.
Increase Impact on Retirees
The Congressional Research Service had forecast in 2020 that the taxes on Social Security Benefits might be around 6.6% of the advantages accrued.. The TSCL highlighted the fact that taxes are variable depending upon the income. However, an average retiree household will be paying $3,211 as per the CRS report.
Mary Johnson, a Social Security analyst for TSCL, said, “Even more unlike other federal income taxes, Congress has never adjusted the income thresholds that subject Social Security benefits to taxation since the tax became effective in 1984,”
