Many retirees are surprised their Social Security is partially taxable. Up to 85% can be subject to federal tax — and thresholds have not been adjusted for inflation since 1984.
Combined income = AGI + non-taxable interest + 50% of SS benefits. Traditional IRA withdrawals count; Roth withdrawals do not.
Strategies to reduce the tax
Roth conversions before claiming SS reduce future RMDs. Draw from Roth accounts instead of Traditional when possible. QCDs at 70.5+ reduce AGI. 13 states also tax SS benefits.
Use our Tax Estimator to model this.
Frequently asked questions
Is Social Security taxable?
Yes, up to 85% depending on combined income.
What is combined income?
AGI + tax-exempt interest + 50% of SS benefits.
How can I reduce SS taxes?
Roth conversions, strategic withdrawal sequencing, QCDs.
Do states tax SS?
13 states do: CO, CT, KS, MN, MO, MT, NE, NM, ND, RI, UT, VT, WV.
What is the standard deduction for retirees?
$16,100 single + $1,950 for 65+.