Stay below the taxable thresholds

Social Security benefits might be taxable if the sum of the adjusted gross income, nontaxable interest, or half of the Social Security benefit is over $25,000 for an individual and $32,000 for a married couple.

If any of these income sources are somewhere between $25,000 and $34,000 (or $32,000 and $44,000 for couples), then income tax will apply to half of your Social Security benefit. Seniors who have incomes over $34,000 (and $44,000 for couples) have to pay income tax on no less than 85% of their Social Security benefit.

Even so, you won’t have to pay tax on your entire Social Security benefit, no matter the income. “The wide majority of retirees are shocked to hear that they have to pay as much as 85% of their Social Security benefits” as Dana Anspach, certified financial planner and the CEO of Sensible Money in Scottsdale, Arizona, explained. “However, good news: no matter what, 15% of your Social Security benefits are completely tax-free.”