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In reply to the discussion: I'm Old, on Social Security, and Just Finished Doing My Taxes [View all]PoindexterOglethorpe
(25,948 posts)In my case, I'd expected something like that, as I started taking income from two annuities back in December. From one we'd had 10% withheld for federal taxes, on the other, nothing. Turns out I'm getting about $200 from federal, but owe about $500 for state income tax. Darn, but I can afford it. I've now started withholding from that second annuity in the amount of $50/month which should more than cover the state income tax.
I really cannot complain. I'm the rare retired person whose income has actually gone up recently because of a change in my SS (switched from collecting as a divorced spouse to collecting on my own account, resulting in about $500/month more.) And then I turned on two annuities, which resulting in about another $500/month. Lucky me. Most retirees see no increase ever in their income.
My total income is somewhat modest, but the essential point is that I can live on it and even continue to save money to pay for things like a future trip, or unexpected expenses.