MINIMIZE YOUR TAX BURDEN
Once Social Security benefits kick in, recipients with income over certain thresholds must pay the tax man. (Income here includes variables such as wages, capital gains, dividends and interest payments, payouts from retirement accounts, and one-half of Social Security benefits.) A married couple with income between $32,000 and $44,000 owes taxes on up to half the value of their Social Security benefits. Income exceeding $44,000 incurs taxes up to 85 percent of the annual benefit. For single recipients, the outside income thresholds are $25,000 and $34,000.