For millions of retirees relying on Social Security, understanding the rules of this popular benefits program is crucial.
Unfortunately, some rules are confusing and work differently than you might expect
In fact, there’s one specific regulation that surprises retirees each year — and it could cost them money. Here’s what the rule is, along with some details on why it catches so many seniors off guard. Retirees don’t expect this Social Security rule The Social Security rule that catches many seniors by surprise has to do with when taxes are charged on benefits.
And the issue is that, unlike many other rules regulating the program, the threshold is not indexed to inflation. Social Security benefits were originally not taxed at the federal level. That changed in the 1980s and 1990s, when lawmakers enacted reforms to shore up the program’s finances.