Will This Bill End Social Security Taxes?

Many people believe that taxing Social Security benefits is unfair, but it's not the only example of double taxation in U.S. tax law. Find out more here.

Jan 26, 2014 at 10:35AM

Millions rely on Social Security for their financial security in retirement. But what many don't know is that Social Security benefits are subject to tax in certain circumstances. One group of lawmakers is trying to change that.

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, talks about a recent bill to end income taxation of Social Security benefits. Dan begins by noting the way that Social Security gets taxed, with those earning over certain income limits having a portion of their benefits added to their taxable income. Yet Dan points out that double taxation is rampant in the U.S. tax system, using the example of the dividend payments that AT&T (NYSE:T), ExxonMobil (NYSE:XOM), and thousands of other companies make to their shareholders. Dan notes that one reason that Visa (NYSE:V), Goldman Sachs (NYSE:GS), and other low-yielding dividend stocks don't have higher payouts is that they choose instead to use stock buybacks to return capital to shareholders in a more tax-friendly way. Dan concludes with his assessment of the likelihood of this bill becoming law, noting that it's important to manage your taxes to minimize the impact of Social Security taxation on your overall tax bill.

Make the most of Social Security
Knowing how to avoid unnecessary Social Security taxation is just one smart way to make more from the benefits you get. In our brand-new free report, "Make Social Security Work Harder for You," our retirement experts give their insight on making the key decisions that will help ensure a more comfortable retirement for you and your family. Click here to get your copy today.

Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs and Visa. The Motley Fool owns shares of Visa. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information