Keep Your Taxable Income Low
The amount retirees collect from Social Security depends on your age, how long you’ve worked and how much you’ve contributed. Low-income retirees can usually avoid paying income tax on this benefit, but if you receive more than $25,000 a year — or $32,000 if married and filing joint — you’re going to lose part of that income to taxes.
There are, however, creative ways to avoid paying too much tax on your Social Security income. For example, instead of taking taxable distributions from a 401k or traditional IRA, you might want to invest in a Roth IRA instead, which offers tax-free withdrawals during retirement.