Golden Opportunities

Just 6 weeks ago, the mail was full of holiday cards. Now it's full of credit card bills and tax forms. Tax season isn't as much fun as holiday season. But here to make sure our tax season is at least fair, if not festive, is Jim Lineweaver from the Lineweaver Financial Group.

Question: How can we make tax season a little less taxing?

Answer: There are a number of techniques that may allow us to cut our taxes. It might be good to focus on the tax on Social Security benefits today, because lots of people are paying taxes that could be saved.
The taxation of Social Security benefits can be confusing and, quite frankly, emotional. People generally assume they already paid taxes when they contributed to Social Security while working, rarely even thinking that the benefits they are to receive could be taxed again.
Plus, Social Security is great places to start looking at cutting taxes, because it's pretty much the foundation of everyone's retirement.

Question: Can you explain how Social Security benefits are taxed?

Answer: Absolutely. Up to 50% of Social Security benefits are taxable if total "provisional income" exceeds a base amount: $25,000 for single taxpayers and $32,000 for married taxpayers, filing jointly.
And it gets worse. Up to 85% of Social Security benefits get taxed if you are a (1) single taxpayer with provisional income over $34,000; (2) married taxpayer filing jointly with provisional income over $44,000; and (3) married taxpayer who files separate returns, but does not live apart.

Question: What is included in "provisional income" that triggers a tax on Social Security?

Answer: Provisional income includes:

• Normal income, like wages and interest on CDs.

But also:

• All tax exempt interest.
• And ½ of your Social Security Benefits.

Question: Is there a way to cut taxes on Social Security?

Answer: Yes, but it can be quite complicated. For example, you may be wise to switch from CDs to stocks and real estate that grow in value but do not generate annual income.

Question: Where can our viewers find help dealing with taxes on Social Security?

Answer: You can call my office to ask a question, and we'll try to answer. But determining the best ways to cut taxes on Social Security is not a simple yes or no question, and really requires an analysis of a person's entire tax situation and investment plan.
To help Golden Opportunities viewers, our tax advisers will do their 2007 tax return. We can't do it for free, because these take time, sometimes a lot of time. But we will offer G. O. viewers that we'll do the return for ½ the cost that they paid last year.

Question: For people who don't want to come in to your office, is there any other way to get more information?

Answer: Yes. We'll be doing free educational seminars.

• Gavi's Restaurant
  38257 Glenn Ave
  Willoughby, OH 44094
  Tuesday, February 5, 2008; 5:30 pm
  Thursday, February 7, 2008; 5:30 pm
• Champps Restaurant
  Crocker Park
  12 Main St.
  Westlake 44145
  Tuesday, February 19, 2008; 5:30 pm
  Thursday, February 21, 2008; 5:30 pm

Are you paying more taxes than you need to on your Social Security? To learn more, call the number that's next for information about upcoming seminars and the half-off tax preparation offer. And next week, we'll have Jim back to talk about more tax saving tips.