Sandy & Shirley
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What is the proper terminology to use for your Social Security Income?
I’ve used the term deferred before, but that is not exactly right. That is the term for your 401K contributions. The taxation of that money is deferred for years until you withdraw it.
Your benefits are basically given to you tax free and then slowly taxed as your other income increases. This is basically the same as the way your Long Term Gains and Qualified Dividends are taxed, just different rules. It is possible that these income types could be partially taxed in a given year while the rest is never taxed because your income wasn’t high enough.
Tax deferred benefits?
Tax delayed benefits?
What is the proper economic term to use when talking about these income types?
I’ve used the term deferred before, but that is not exactly right. That is the term for your 401K contributions. The taxation of that money is deferred for years until you withdraw it.
Your benefits are basically given to you tax free and then slowly taxed as your other income increases. This is basically the same as the way your Long Term Gains and Qualified Dividends are taxed, just different rules. It is possible that these income types could be partially taxed in a given year while the rest is never taxed because your income wasn’t high enough.
Tax deferred benefits?
Tax delayed benefits?
What is the proper economic term to use when talking about these income types?