What Social Security Benefits Are Subject to Increased Taxes!

The Revenue Reconciliation Act of 1993 has created an additional financial burden for many retired persons by exposing more of their Social Security Benefits to personal income taxes. In the past, retirees with provisional income above certain limits saw as much as 50% of their Social Security payments subject to taxes.

However, as of January 1, 1994, there is a new tax bracket imposed on some retirees. People who exceed these new income levels are now faced with paying taxes on up to 85% of their Social Security benefits.

How much of your income is ultimately subject to taxes depends on how much provisional income you have. Provisional income includes not only normal earned income, such as interest from CDs or mutual funds, but also one-half of Social Security benefits received and even tax-exempt income such as interest from tax-free municipal bonds and bond funds!

Are you being taxed on your Social Security Benefits?

(Please see box 20b on the 1040 tax form)

Filing Status

What can cause you to be taxed on your Social Security Benefit Income?

1. 1099 Interest Income

Many seniors are receiving 1099 interest income from their CDs and other investments. Whether you are spending all of this interest income or not, you too can benefit by lowering the amount of taxes that you are paying to Uncle Sam EACH YEAR on these earnings!

Are you being taxed on your Interest Earnings? (Please see box 8a on the 1040 tax form)

2. 1099 Dividend Income

Just like interest income above, many seniors are receiving 1099 dividend income from stocks, mutual funds, etc. Whether you are spending all of this dividend income or not, you can also save tax dollars by lowering the amount of taxes that you are paying to Uncle Sam EACH YEAR on these earnings!

Are you being taxed on your Dividend Earnings? (Please see box 9 on the 1040 tax form)

3. Tax Exempt Interest

Even tax-exempt income such as interest from tax-free municipal bonds and bond funds can create a higher tax on your Social Security Benefit Income.

Are you being taxed on your Tax Exempt Interest? (Please see box 8b on the 1040 tax form)

Take this simple test to see how YOU can save on Taxes!

Take out your last 1040 tax return!! If you are showing a figure in box 20b, then you ARE BEING TAXED ON YOUR SOCIAL SECURITY INCOME! If you are showing income in box 8a, 8b or box 9…YOU can lower your taxes!!

So…What Can You Do?

With the Taxpayer Relief Act of 1997, YOU have the Power to Reduce Your Taxes! By using a concept we call "Income Management" YOU can determine how much of your income will be taxed and at what level it will be taxed at.

What is "Income Management"?

Income Management gives you the power to decide how much of your income and at what level your income will be taxed at. You see, the government has already determined how the vast majority of us receive our income and established tax brackets that will maximize the amount you are responsible to pay. Income Management puts you in the driver’s seat to choose what level you wish to be taxed at.

Many of our clients have been able to legally cut thousands of dollars off their income tax bill EACH YEAR, by following the principles of Income Management. The Taxpayer Relief Act of 1997 gives you the power to choose how much income tax you will pay!

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Home Office Address: 6500 Poe Ave. Suite 105, Dayton, OH 45414 (937) 890-3101

Lifetime Decisions Management, Inc. is not a subsidiary of nor controlled by SICOR Securities, Inc.