The Social Security Tax Survival Guide
You earned your Social Security benefits. But here’s the twist: they may not all be yours to keep. The IRS can tax up to 85% of them. That doesn’t mean you’re powerless—it means you need a plan. Think of this as your survival guide to keep Uncle Sam from taking a bigger bite than necessary.
3 Key Points Up Front
Taxes on Social Security depend on your other income.
The combined income formula is the IRS’s yardstick.
Smart planning = more money stays in your pocket.
Why Your Benefits Aren’t Always Tax-Free
Social Security was designed as a safety net, but the tax rules changed in the 1980s. Now, if you have income from savings, pensions, or retirement accounts, part of your benefit may be taxable.
Here’s the IRS’s formula:
Combined Income = AGI + Nontaxable Interest + ½ of Social Security
Singles: $25,000–34,000 = up to 50% taxable; over $34,000 = up to 85%.
Married couples: $32,000–44,000 = up to 50%; over $44,000 = up to 85%.
Survival Strategy #1 – Spread Out Your Income
One of the biggest mistakes retirees make is piling income into the same years as Social Security. Large IRA withdrawals or selling investments at the wrong time can suddenly push benefits into the taxable zone. By spreading out withdrawals and staggering income, you can soften the blow.
Survival Strategy #2 – Use the Delay to Your Advantage
Waiting to claim Social Security until full retirement age or even age 70 doesn’t just mean bigger checks—it can also mean smarter tax planning. The extra time gives you room to manage IRA or 401(k) distributions before benefits start.
Survival Strategy #3 – Look Beyond Today’s Tax Bill
It’s not just about paying less this year. It’s about your entire retirement. A small shift—like converting a portion of your IRA to a Roth before Social Security—can save thousands over your lifetime.
Curiosity Teaser
Retirees often give away more money to taxes than they need to—simply because they didn’t plan. With the right survival strategies, you don’t have to be one of them.
Social Security taxes are real, but they don’t have to be crushing. With the right moves—spreading income, delaying smartly, and planning long-term—you can reduce the tax bite and enjoy more of your retirement income.
This is where expert help pays off. Albert Ferrin as an RSSA® Certified Advisor, with Senior Help And You will walk you through your numbers and show you exactly how to apply these survival strategies to your life.
👉 Book your free Tax-Smart Social Security Strategy Call today.
3 Takeaways
Up to 85% of benefits can be taxed—but planning can lower that.
Managing income streams is key to survival.
A customized strategy helps you keep more money for life.
References
Social Security Administration – Taxes and Your Social Security Benefit
RSSA® Advanced Topics & Comprehensive Retirement Planning
Author: Albert Ferrin as an RSSA®, Founder - Senior Help And You LLC
