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Subject:  Re: social security Date:  4/17/2000  11:30 PM
Author:  suziek1 Number:  3585 of 20791

I believe that your accountant is talking about the fact that all of your income, plus one-half of your SS benefit, is totalled to see if it exceeds a limit set by IRS. If it does, you will be taxed on your SS on a sliding scale up to 85% of your benefit. In your case it sound like that total hits the maximum limit and you will be paying taxes on 85% of your benefit. There are a number of factors that enter into your situation: If your taxable SS pushes you up into a higher bracket, then your investment income (short-term) will be taxed at that higher rate. On the other hand, you have to pay taxes on your investment income and it has to come out of something, interest, dividends, or SS. You need to have someone analyze this given different scenarios with the real numbers. Don't confuse this with the fact that you are allowed to only earn so much before your benefits are reduced. In that case, the actual amount you receive is reduced.
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