8. Forgetting about taxes on Social Security benefits
Don’t assume you’re not going to have to pay taxes once you retire. Plan your financial future with them in mind and save yourself from headaches further down the line.
When tax season comes around, combine your income and half of your Social Security benefits. For singles, if your total is higher than $25.000, you might owe tax. For joint filers, that number will go up to $32.000. Keep in mind that as much as 85% could be subject to income tax if your income is especially high.
When tax season comes around, combine your income and half of your Social Security benefits. For singles, if your total is higher than $25.000, you might owe tax. For joint filers, that number will go up to $32.000. Keep in mind that as much as 85% could be subject to income tax if your income is especially high.
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