kadee79
Senior Associate
S.W. Ga., zone 8b, out in the boonies!
Joined: Mar 30, 2011 15:12:55 GMT -5
Posts: 10,871 
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Post by kadee79 on Dec 26, 2022 14:27:56 GMT -5
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tallguy
Senior Associate
Joined: Apr 2, 2011 19:21:59 GMT -5
Posts: 14,690
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Post by tallguy on Dec 26, 2022 16:45:12 GMT -5
I've always looked at articles like these as fear-mongering clickbait. First, they admit within the article that half of recipients only have SS income and won't pay a dime more in taxes. Most others won't pay much, and will certainly come out far better with the COLA. In my situation, I will get over $2000 more per year. I can either take $1000 less from investments and still pay no tax, or I can simply pay $100 in income tax. No big deal. In a "worst-case" tax situation, where a retired couple both receive SS and have other income, they may receive around $5000 more from the COLA and have it cost them about $1000 in tax. They are still $4000 ahead. Hard to get upset about this "bad news."  |
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kadee79
Senior Associate
S.W. Ga., zone 8b, out in the boonies!
Joined: Mar 30, 2011 15:12:55 GMT -5
Posts: 10,871
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Post by kadee79 on Jan 1, 2023 20:09:45 GMT -5
Yes TG, you are correct. However, I have some friends who need to plan how much to take out of their retirement accts. so they don't end up with a bigger than expected tax bill. So my posting this was just sort of a heads up...be aware of what "could" happen if you don't plan for the entire year. Not everyone keeps up with news reports & some don't have super good advisors about what they should or shouldn't do or what will happen if they do this or this or this or that.
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