For retirees and near-retirees, one extra dollar of income can sometimes do surprising damage. Medicare and Social Security benefits both have “income cliffs”—thresholds that trigger higher costs or unexpected taxes. Crossing those lines, even slightly, can raise your monthly Part B premium or reduce your Social Security payout. The worst part? These cliffs often come from income sources you don’t even think of—like capital gains, withdrawals, or bonuses. Understanding where the danger zones are can save hundreds (or even thousands) a year.
