Has Your Social Security Income Dropped This Year?
Those of you collecting Social Security income can typically expect to have your check directly deposited into your account each month, and every year, you get a small increase for inflation. But what if you start a new year and you see your Social Security payment go down? You may be wondering how this even happens?
The answer may be found in your income from the previous year. A recent article shares how an increase in your income one year can result in higher Medicare premiums the following year, therefore, decreasing your Social Security deposit.
Some examples of items that can hit your tax return and impact these types of calculations include:
- A large one-time capital gain
- Roth Conversions
- Large IRA distributions
- Losing significant deductions
- And many more!
It should come as no surprise that the government is always looking for ways to get a bigger piece of your pie. Careful tax management includes looking forward and taking action this year to better manage next years’ potential consequences. Make sure your tax advisor is considering all potential outcomes of the planning he or she recommends.
When is the last time you had a Complete Planning Review, which includes analyzing your income, investment and tax positions?
To read the above referenced article, Click Here.