April 10th, 2009 by Reed Allmand 
Many senior citizens preparing for retirement may not realize that their Social Security income could be taxable under certain conditions. When determining whether Social Security income is taxable the government uses a formula that calculates the taxable amount. Basically when a senior citizen’s income from other sources, such as a 401K or investment property plus half of their Social Security income exceeds $32,000 as a couple or $25,000 as a single person some of the Social Security income will become taxable.
That’s not a lot of money, so seniors need to be prepared for the tax bill which can really affect their bottom-like. Unlike earlier generations, many senior citizens are retiring with large amounts of debt including a mortgage. These debts are an added burden to the medical expenses that are more likely to increase with age and the tax burden that seems to never go away. But if a senior citizen is facing a heavy tax burden and/or debt burden that is making it difficult for them to survive during retirement, the bankruptcy laws do offer some relief
Most types of consumer debt and even some taxes can be discharged in a Chapter 7 Bankruptcy, especially for those who are on a low fixed income. Call a Dallas-Fort Worth bankruptcy attorney today to hear about bankruptcy options that may be especially beneficial to senior citizens.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
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