Prior to 1984 , SS income was tax-free. Today seniors could be paying tax on up to 85% of their SS income. Annuities can help reduce and sometimes eliminate the income tax on your SS income!
IRS calculates the tax on SS income based on your total income from all source. However, income you earn on annuity that is left to accumulate (deffered) does not appear on your curent tax return.
Therfore, annuities may reduce your total income for that year for SS benefit taxation purpose. In fact if you shelter enough income in annuities and bring your income below the thresholds of $25,000 adjusted gross income for single taxpayer and $32,000 for married you then pay no tax on your SS income. Remember: for your benefit always consult with tax advisor or attorney. Wonder if these calculations work to your advantage? Lets talk.
