Social Security benefits are crucial for retirement income, but some retirees end up owing taxes. Federally, up to 50% of benefits are taxed over $25,000 for single filers and $32,000 for joint filers. Nine states tax benefits, including Colorado, Connecticut, and Vermont.

To avoid owing taxes, consider withdrawing from Roth IRAs, not traditional retirement accounts. Another option is opening a gold IRA, combining the benefits of IRA tax advantages with investing in gold for protection against economic uncertainties.

Delaying Social Security benefits can increase monthly checks and help stay under taxable income limits. Drawing down investment accounts early can also reduce the need for larger withdrawals later. Working with a financial advisor can help strategize safe withdrawal rates and minimize taxes.

Making charitable contributions can reduce income and avoid taxes on Social Security benefits. If eligible, you can donate your RMD directly to charity under the qualified charitable distribution rule. By exploring these options, you may minimize or avoid taxes on Social Security benefits.

Read more at Yahoo Finance: There are 9 states in America taxing Social Security benefits in 2025