Most people assume their tax burden lightens in retirement, but what if I told you that some taxes are actually designed to creep up on you year after year—without Congress passing a single new law? In this episode, we expose the sneaky taxes that can quietly erode your retirement income, from Social Security taxation to Medicare IRMAA surcharges. These hidden costs don’t just affect the ultra-wealthy anymore; thanks to outdated rules and inflation, they’re hitting everyday retirees harder than ever.
If you're relying on Social Security, investment income, or Medicare in retirement, you may already be on the IRS’s radar—without realizing it. We break down the four biggest tax traps, explain how they’ve changed over time, and why they’re pulling more retirees into the tax net each year. Whether it's the frozen thresholds for Social Security taxes or the stealthy Medicare penalties that kick in just because you had a good income two years ago, these sneaky policies can add up fast.
By the end of this episode, you’ll have a clearer picture of how these taxes work, why they exist, and what—if anything—you can do to soften the blow. If avoiding unnecessary taxes in retirement sounds like a smart move, you won’t want to miss this one!
Outline of This Episode
- (0:00) Sneaky Retirement Taxes
- (3:20) Sneaky Tax #1: Social Security taxation (how frozen thresholds trap retirees)
- (5:10) Sneaky Tax #2: Capital loss deduction limit (unchanged since 1978!)
- (6:55) Sneaky Tax #3: Medicare IRMAA (tracking your income before you even retire)
- (08:45) Sneaky Tax #4: Net Investment Income Tax (how it quietly pulls in more taxpayers)
- (09:40) Wrap-up – Why these taxes persist & what you can do about them
Resources & People Mentioned
- The Retirement Podcast Network
- Social Security Administration’s Taxation of Benefits
- IRS Q&A on Net Investment Income Tax
Connect with Benjamin Brandt
- Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com
- Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter
- Work with Benjamin: https://retirementstartstoday.com/start
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