Reducing Social Security Tax

This is a news story, published by Yahoo Finance, that relates primarily to Social Security news.

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Social Security income

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Business & Economics

Ask an Advisor: Can I Reduce My RMD to $25k to Avoid Taxes on Social Security?

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76% Informative

Social Security income is taxed, and how much of it is taxed depends on your tax filing status and your other income.

If you’re single, you would be subject to the following tax thresholds: - If your combined income is less than $25,000 , none of your Social Security benefits are taxed.

In your case, assuming that your RMDs are the only income you have aside from Social Security , there are two main strategies that I would consider: Accelerate IRA income.

If you can do this in a way that reduces the future taxability of your Social Security benefits without pushing you into higher tax brackets now, you could save yourself some money over the long term.

Another option with the potential for a more immediate benefit is to make what’s called a qualified charitable distribution.

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