Managing Taxable Social Security Benefits refers to the process of determining the portion of Social Security benefits that is subject to federal income tax.
The amount that is taxable depends on the recipient’s combined income, which includes adjusted gross income, tax-exempt interest, and half of the Social Security benefits received.
In general, if the combined income exceeds certain thresholds ($25,000 for individuals and $32,000 for married couples filing jointly), a portion of the benefits may be subject to tax. Up to 85% of benefits can be taxable based on income levels.
Effective management involves planning and strategies to minimize tax liability, such as timing withdrawals from retirement accounts or managing other sources of income.
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