Social Security benefits are vital to most retirees. According to the National Academy of Social Insurance (NASI), Social Security benefits make up more than half the retirement income of 61% of beneficiaries, and for 20% of people age 65 and up, it’s the sole income source. Furthermore, NASI notes: “Overall, Social Security keeps 22 million Americans out of poverty, including nearly 15 million seniors and 1 million children.”
Given all that, it’s clear that retirees will want to keep every dollar of their benefits if they can. Most folks will be able to keep most of their benefits — but some will fall prey to the federal government’s taxation of benefits. Most states don’t tax benefits, but some states do.
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