6. Watch for a Tax-Bracket Bump
The US has a progressive tax system, meaning Americans with higher taxable incomes pay higher income tax rates. For the 2022 tax year, there are seven federal tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The bracket you’re in depends on your filing status and taxable income.
If you’re still working while receiving Social Security checks, make sure you watch out for tax bracket creep. Your retirement benefits plus your earnings could change your position on the tax table. Now, if you earn enough money, the tax bracket bump-up may not be a big deal compared to the extra cash you make.
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