Many retirees encounter an unexpected challenge each year: reducing taxes on their hard-earned Social Security benefits. While these benefits provide essential income for millions of older adults, they can also lead to a surprising tax burden. That's because depending on your income, up to 85% of your Social Security benefits may be subject to federal tax.
For single filers, taxes on Social Security benefits generally begin when combined income surpasses $25,000; for married couples filing jointly, the threshold is $32,000. Current Social Security Administration projections show that about 56% of beneficiary families will owe federal income tax on their benefits through 2050.
