This tax season, 66 million Americans will face unexpected Bills for Social Security hikes in their IRS bills due to Social Security payment adjustments.
66 million Americans will face unexpected Bills for Social Security hikes (Photo from Yahoo)
Bill for Social Security Social Security Recipients: 66M Americans to Pay More
The 8.7% increase in Bills for Social Security payouts last year, reflecting the Cost-of-Living Adjustment (COLA), is excellent news for recipients, but the IRS will take a cut.
If retirees adjusted gross income, including 85% of Social Security payouts, reaches $25,000 for single filers or $32,000 for married couples, their “unexpected Bills for Social Security” tax responsibilities will increase. The tax threshold has been unchanged since 1984, increasing pensioners’ IRS responsibilities despite annual Social Security increases.
In 2023, pensioners’ tax burden increased the greatest since 1981 due to the COLA. Shannon Benton, Senior Citizens League Executive Director, predicts a large rise in Social Security taxpayers this year.
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Retirement and Remote Workers Face Unexpected Bill for Social Security in 2024
Retirees and remote workers face an increase in bills for Social Security tax issues in 2024, which begins on January 29. Remote workers who work in another state should beware of double state income taxes. New York taxes employees based on their employer’s location, not their job location.
Some states credit employer-paid taxes, although it depends on reciprocal tax arrangements. The tax season begins on April 15, with a filing deadline. For early filers, IRS Free File, the government’s free filing service, promises to process most refunds within 21 days.
COLA-driven payment increases caused unexpected bills for Social Security recipients, exposing the constant tax level since 1984. The 2024 tax season has begun, and retirees and remote workers should be mindful of potential tax problems and plans.
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