By Joy Taylor
From Kiplinger’s Personal Finance
Question: Given the high rate of inflation, does that mean the income limits for avoiding taxes on Social Security benefits will be going up now?
Answer: Although many income-tax breaks and income levels are indexed to inflation each year, some important ones are not. And taxation of Social Security benefits is one of them.
Inflation essentially causes the value of these non-adjusted items to diminish. That decrease in value accumulates over time and grows more rapidly in times of rising inflation. That’s why some might again refer to these as stealth tax hikes….