From Yahoo Finance: 2025-04-27 08:30:00

Summary 1:
The IRS uses “combined income” and filing status to determine if Social Security benefits are taxable. With $36,000 in Social Security benefits, half may be taxable if additional income sources push combined income above certain thresholds. Managing taxable benefits can be achieved through various strategies like Roth accounts and reducing income.

Summary 2:
To determine if Social Security benefits are taxable, divide income in half and add adjusted gross income and income from tax-exempt sources. For a single filer receiving $36,000 in Social Security with no other income, benefits are not taxable if total income is below $25,000. Different brackets apply based on combined income for single and joint filers.

Summary 3:
Most retirees have additional income sources beyond Social Security, making some benefits taxable. Methods to reduce taxable benefits include managing combined income, utilizing Roth IRAs, and timing withdrawals. Selling investments, having an emergency fund, and seeking advice from a financial advisor can also help minimize taxes on Social Security benefits.



Read more at Yahoo Finance: How Can I Lower the Tax Hit on My $3,000 Monthly Social Security Income?