For example, let’s say you’re a single filer who receives a monthly benefit of $1,900, which is just under the average benefit for retired workers in November 2024. While your total annual benefits add up to $22,800 in 2024, imagine that you also have $18,600 in other income. As a result, your combined income would be an even $30,000 ($11,400 + $18,600). The difference between your combined income and the base tax bracket (which is $25,000 for single filers) is $5,000. So the taxable amount that you would enter on your federal income tax form is $2,500, because it’s lower than half of your annual Social Security benefit and is half of the difference between your combined income and the base IRS amount.The example above is for someone who’s paying taxes on 50% of their Social Security benefits. Things get more complex if you’re paying taxes on 85% of your benefits. However, the IRS helps taxpayers by offering software and a worksheet to calculate Social Security tax liability.How to File Social Security Income on Your Federal TaxesOnce you calculate the amount of your taxable Social Security income, you’ll need to enter that amount on your income tax form. Luckily, this part is easy. First, find the total amount of your benefits. This will be in box 3 of your Form SSA-1099. Then, on Form 1040, you will write the total amount of your Social Security benefits on line 5a and the taxable amount on line 5b.Which States Tax Social Security Benefits?Everything above relates to your federal income taxes, which comprise the majority of your tax liability. Depending on where you live, though, you may also have to pay state income taxes on your benefits.There are nine states that collect taxes on at least some Social Security income. Utah follows the same taxation rules as the federal government so you’ll pay the state’s regular income tax rates on all of your taxable benefits (that is, up to 85% of your benefits).The other states also follow the federal rules, but offer or exemptions based on your age or income. So in those nine states, you likely won’t pay tax on the full taxable amount. The other 41 states plus Washington, D.C. do not tax Social Security income. Here’s a complete breakdown of the states that do and don’t tax Social Security:State Taxes on Social Security BenefitsTaxed According to Federal Rules (for MAGI is over $45,000)UtahPartially Taxed (Exemptions for Income and Age)Colorado, Connecticut, Montana, New Mexico, Minnesota, Rhode Island, Vermont, West VirginiaNo State Tax on Social Security BenefitsAlabama, Alaska, Arizona, Arkansas, California, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington, Wisconsin, WyomingThe Impact of Roth IRAs on Social Security TaxesIf you’re concerned about your income tax burden in retirement, consider saving in a . Unlike many other retirement accounts, you save with after-tax dollars in a Roth IRA. Because you pay taxes on the money before contributing it to your Roth IRA, you will not pay any taxes when you withdraw your contributions.You also don’t have to withdraw the funds on any specific schedule after you retire. This differs from distributions in traditional IRAs and 401(k) plans. These instead once you reach 73 (75 for people born in 1960 or later).So, when you calculate your combined income for Social Security tax purposes, your withdrawals from a Roth IRA won’t count as part of that income. That could make a Roth IRA a great way to increase your retirement income without increasing your taxes in retirement.Simplifying Your Social Security TaxesDuring your working years, your employer probably withheld payroll taxes from your . If you make enough in retirement that you need to pay federal income tax, then you’ll also need to withhold taxes from your monthly income.To withhold taxes from your Social Security benefits, you’ll need to fill out Form W-4V (Voluntary Withholding Request). The form only has seven lines. You will need to enter your personal information and then choose how much to withhold from your benefits. The only withholding options are 7%, 10%, 12% or 22% of your monthly benefit. After you fill out the form, mail it to an SSA office or drop it off in person.If you prefer to pay more exact withholding payments, you can choose to file estimated tax payments instead of having the SSA withhold taxes. are tax payments that you make each quarter on income that an employer is not required to withhold tax from. So if you ever earned income from self-employment, you may already be familiar with estimated payments.In general, it’s easier for retirees to have the SSA withhold taxes. Estimated taxes are a bit more complicated and will simply require you to do more work throughout the year. However, you should make the decision based on your personal situation. At any time you can also switch strategies by asking the SSA to stop withholding taxes.Bottom LineWe all want to pay as little in taxes as possible. This is especially true in retirement when most of us have a set amount of savings. If you’re paying taxes on your Social Security, you probably have income from other sources and you’re not entirely dependent on Social Security to cover your living expenses. You can also save on your taxes in retirement simply by having a plan for managing your various sources of income.Tips for Saving on Taxes in Retirement, The IRS reminds taxpayers receiving Social Security benefits that they may have to pay federal income tax on a portion of those benefits. Social Security benefits include monthly retirement, survivor and disability benefits., The new 2025 Trump tax law doesn't eliminate federal income tax on Social Security benefits. Social Security is still taxable just as before..