Social Security can generate real income. The more you earned during your working life, up to each year’s income caps, the more you receive in benefits during your retirement. In 2024, someone with maximum credits who waits until age 70 will receive almost $60,000 per year in benefits. But, as always, more money means more taxes. While you don’t owe payroll (or “FICA”) taxes on Social Security benefits, since those only apply to earned income, the IRS can levy income taxes on them. Here, with benefits of ...

SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Social Security plays a critical role in the retirement plans of millions of Americans, but how these benefits are taxed is sometimes overlooked. If you collect $2,700 per month in Social Security benefits, your check is well above the average retirement benefit of approximately $1,800 per month and it could mean that you’ll owe taxes on this money. However, there are ways to potentially reduce your tax li ...