08/26/2026
Most retirees are surprised to learn their Social Security benefits are taxable. Depending on your income, up to 85% of what you receive could be taxable.
The IRS determines how much of your Social Security to tax using a formula called provisional income. It takes your Adjusted Gross Income (AGI), plus tax-exempt interest (yes, including muni bond income), plus 50% of your gross Social Security benefit. The result is compared to thresholds set by Congress in 1986, which have never been adjusted for inflation.
For married couples, exceeding $44,000 in provisional income can push up to 85% of their benefits into taxable income. A single Roth conversion, a part-time consulting project, or an RMD can push you across that line and trigger taxes on benefits that would otherwise have been tax-free.
This isn't a problem you solve in April. It's a planning conversation that belongs in the years before retirement benefits start.
๐๐ฐ๐ถ๐ณ๐ค๐ฆ: ๐๐๐ ๐๐ถ๐ฃ๐ญ๐ช๐ค๐ข๐ต๐ช๐ฐ๐ฏ 915, 2025 ๐ต๐ข๐น ๐บ๐ฆ๐ข๐ณ. ๐๐ฐ๐ณ ๐ฆ๐ฅ๐ถ๐ค๐ข๐ต๐ช๐ฐ๐ฏ๐ข๐ญ ๐ฑ๐ถ๐ณ๐ฑ๐ฐ๐ด๐ฆ๐ด ๐ฐ๐ฏ๐ญ๐บ โ ๐ต๐ฉ๐ช๐ด ๐ช๐ด ๐ฏ๐ฐ๐ต ๐ต๐ข๐น ๐ข๐ฅ๐ท๐ช๐ค๐ฆ.
