Why Irs Form 13844 Reduced 2025

If you're watching this video, you have either already begun taking your Social Security benefits or you're thinking about taking them soon. This is an exciting time when you finally start receiving money back on all the Social Security and Medicare taxes you've paid throughout your life. But don't worry, you're not done paying taxes on your Social Security just yet. Now, you get the privilege of paying income taxes on your Social Security benefits as well. 52% of Americans pay income tax on their annual Social Security benefits. Luckily for you, I'm going to share a few tax-saving tips to help you minimize the amount of taxes you pay on your Social Security as much as possible. Although you might have to pay some taxes on your Social Security benefits, the good news is that at least 15% of the total amount of Social Security income you receive during the year will be completely tax-free. Now, the bad news is that 50% up to 85% of the total amount of income you receive from Social Security each year might be subject to income taxes. In this video, you're about to learn how a little upfront planning can help you minimize your taxes, especially on your Social Security benefits. Let's begin. I have six tax-saving tips for you guys today. The first way to begin saving taxes on your Social Security benefits, and my favorite way, is the Roth IRA. You and your spouse can each have one. Qualified Roth IRA distributions are not factored into the Social Security income equation, which is awesome. As an example, a person could receive $25,000 a year in dividend distributions from their Roth IRA and $25,000 a year in Social Security benefits and still pay zero in tax. That's a full $4,000 a month that...