Relevant tax tips and updates for small business owners and individuals.
Sunday, August 1, 2010
Don't get Blindsided by Tax on your Social Security
Up to 85% of your social security benefits may be taxable if you have income - incl interest, dividends, & gains. Causing SS to be subject to tax will dramatically decrease the amount you net from the non SS income. Strategic planning to space out income when possible is the key. If that is not possible, then retaining a CPA to prepare a projection so you will know in advance what you must set aside for taxes is the next best option.