Three Ways the Government Could Take Your Social Security Benefits
Social Security helps keep millions of older Americans out of poverty. As we continue to face high costs for food and other necessities, including gas prices that have soared to over $4 per gallon across the country, every penny counts. That’s why you might be shocked to learn that there are three ways you can lose a portion of your Social Security benefits.
The Motley Fool says that could happen in the following situations:
Federal taxes – The government taxes a portion of your Social Security benefits if your provisional income — adjusted gross income (AGI), plus any nontaxable interest from municipal bonds, and half your annual Social Security benefit — exceeds certain limits.
State taxes – Eight states — Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont — can tax a portion of seniors’ Social Security benefits.
Garnishment – The Social Security Administration will garnish some of your benefits for unpaid child support, alimony, or restitution. It can also levy up to 15 percent of each Social Security payment for unpaid federal taxes.
The Seniors Trust is committed to improving the financial well-being of older Americans by passing the Social Security Expansion Act. It will give retirees an immediate increase of about $200 a month in benefits, a fair annual cost-of-living adjustment (COLA), increased minimum benefits, and ensure the long-term solvency of the Social Security program.
