Up to 85 Percent of Your Social Security Benefit Can Be Taxable

Social Security benefits are not automatically tax-free. The IRS uses a figure called combined income — your adjusted gross income plus nontaxable interest plus half of your Social Security benefit — to determine how much is taxable.

The Income Thresholds

• If combined income exceeds ,000 (single) or ,000 (married filing jointly), up to 50% of your benefit may be taxable.
• Above ,000 single or ,000 joint, up to 85% becomes taxable.

State Taxes Too

Thirteen states also tax Social Security income on top of the federal amount. Check your state's rules carefully.

How to Reduce This Tax

Planning tools like Roth conversions before retirement, adjusting withdrawals from taxable accounts, and coordinating the timing of other income can help reduce this exposure. Review your withholding or estimated payments to avoid a surprise balance at filing.