Why Some Retirees Might Owe More in Taxes This Year

Social Security recipients are receiving bigger benefit checks this year, thanks to the 8.7 percent cost-of-living adjustment (COLA). While that is putting more money in their pockets each month to help offset inflation, some seniors could end up giving back a sizeable amount come tax time.

As The Motley Fool explains, the federal government taxes Social Security benefits, and this year’s COLA increase could have pushed some seniors into a higher income tax bracket. Making matters worse, residents in 12 states also pay state income tax on their Social Security income. Talk to your accountant or tax preparer to see how the COLA will impact you.  

The Seniors Trust is committed to looking out for the greater good of all older Americans. It wants Congress to enact the Social Security Expansion Act, which will increase monthly Social Security benefit payments, create a strong and long-lasting trust fund, and guarantee every retired worker receives adequate Social Security benefits and a fair COLA. You can show your support by signing our petition to Congress.