Why Social Security beneficiaries may owe more taxes on benefits

  • by:
  • Source: CNBC
  • 02/26/2024

A record 8.7% cost-of-living adjustment helped Social Security beneficiaries stave off the effects of inflation in 2023.

But as they file their federal returns this tax season, they may be surprised to find more of their benefit income has been taxed.

Capitol Hill lawmakers on both sides of the aisle have put forth proposals to eliminate those levies on benefit income altogether.

Rep. Angie Craig of Minnesota, who is championing a bill with fellow Democrats, calls the idea a “win-win.”

“It’s a tax cut for seniors and a way to ensure more Americans can depend on the Social Security benefits they’ve earned,” Craig said in a statement.

But experts say eliminating taxes on Social Security benefit income may be a tough ask as the program faces a funding shortfall.

Social Security by twenty20photos is licensed under Envato Elements Envato Elements

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