How to minimize tax on Social Security benefits

Description

Abstract: There’s a common misconception that Social Security benefits are tax-free. In fact, many people pay federal tax on a portion of their benefits. Recent inflation has resulted in a record 8.7% cost-of-living adjustment to Social Security benefits for 2023. But the tax brackets used to determine how much of your benefits are taxable aren’t adjusted for inflation. This means that some Social Security recipients will see their tax bills increase this year. This article takes a look at available strategies that can minimize these taxes.