So what can you do to lower your Social Security tax liability in the future? Here are a few tips.Taxation of Old-Age, Survivors, and Disability Insurance (OASDI) benefits will also increase to $50,000 for single filers and $100,000 for joint filers starting in 2026.According to the Social Security Administration , starting this year, there will be a tax on Social Security benefits similar to private pension income. There will be a phase-out of the lower-income thresholds between 2025 and 2044.Provisional i ...

Core Insights - The Social Security Administration projects that its OASI Trust Fund will become insolvent by 2032 [1] - Social Security reform is deemed inevitable, with potential measures including benefit cuts, freezing or slowing cost-of-living adjustments, means-testing recipients, and raising the retirement age from 67 to 69 [2] - Workers are advised to revise their retirement strategies, considering that Social Security may only serve as a small supplement rather than the foundation for retirement [3] Financial Strategies - It is recommended to save a larger nest egg for retirement, especially for individuals under 40, who should plan for Social Security as a minor supplement [3] - Reducing structural costs is crucial; strategies include paying off mortgages, downsizing homes, and eliminating other debts to create financial flexibility in retirement [4] - Maximizing contributions to Roth accounts is advised, as they allow for tax-free growth and withdrawals, protecting against future tax rate increases [5] - Converting traditional IRA funds to Roth accounts while tax brackets remain low is suggested to lock in current tax rates and shield from means-testing [6] - Preparing to work later in life is essential, as future Social Security reforms may necessitate longer working years than initially planned [7]