This article appears as part of Casey Weade's Weekend Reading for Retirees series. Every Friday, Casey highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Get on the list here.

Here are additional things to keep in mind:

📌 Tax Rules: Taxability is based on "combined income," which includes adjusted gross income, nontaxable interest, and half of Social Security benefits

📌 Misconceptions: Age does not exempt Social Security benefits from taxation; income and filing status are the primary determinants. Survivor and disability benefits are also taxable, but Supplemental Security Income (SSI) is not.

📌 Tax Planning Options: Recipients can have federal taxes withheld from their monthly benefits or make estimated quarterly payments to manage their tax liability

📌 COLA Impact: Cost-of-living adjustments (COLA) may push some recipients into higher tax brackets. The 2025 COLA is 2.5 percent.

📌 State Taxes: While most states do not tax Social Security benefits, eight states still do. However, some states, like New Mexico, offer exemptions or deductions that reduce the tax burden.

Key Takeaways: Understanding how your Social Security benefits are taxed is essential for effective retirement planning. Consulting a tax professional can help you develop a tax-efficient strategy to avoid surprises.