From 24/7 Wall St. · Gerelyn Terzo · · 1m
AI Stock Gains Boost Social Security Taxes
A 64-year-old's $200,000 AI stock profit won't reduce Social Security checks but could make 85% of benefits taxable.
In brief
A 64-year-old's $200,000 AI stock profit won't reduce Social Security checks but could make 85% of benefits taxable. A single stock sale of $200,000 gains in retirement increases taxable Social Security benefits by $16,900 without affecting checks. Originally reported by 24/7 Wall St..
AI Bull Market Gains
The S&P 500 gained 117% over four years ending October 2026.
Retiree's Stock Sale
A 64-year-old sells $200,000 in stocks from a taxable account.
Social Security Checks Unaffected
His Social Security checks remain full despite the stock gain.
Taxable Benefits Increase
85% of his Social Security benefits become taxable after the sale.
Earnings Test Details
Social Security withholds $1 for every $2 earned above $24,480 in 2026.
Combined Income Calculation
Combined income exceeds $34,000, triggering 85% of benefits as taxable.
Tax Impact
The stock sale creates $16,900 extra taxable income from Social Security benefits.
What it means
A single stock sale of $200,000 gains in retirement increases taxable Social Security benefits by $16,900 without affecting checks.
