[Event] Ask the Experts: Navigating Retirement Taxes

The Social Security Administration (SSA) automatically reviews your earnings record each year to determine if your new earnings could increase your monthly Social Security benefit. If your earnings from working at age 74 are among your 35 highest-earning years, the SSA will recalculate your benefit amount and increase it accordingly. This adjustment is automatic and does not require any action on your part.

Taxation of Social Security Benefits While Working

Since you are working while receiving Social Security, there is a possibility that a portion of your benefits could be taxed, depending on your combined income. The IRS defines combined income as the sum of:

1. Your adjusted gross income (AGI),
2. Non-taxable interest, and
3. Half of your Social Security benefits.

For the 2025 tax year, the following thresholds apply:

• Individual Filers:

  • If your combined income is between $25,000 and $34,000, up to 50% of your benefits may be taxable.
  • If your combined income is above $34,000, up to 85% of your benefits may be taxable.

• Married Couples Filing Jointly:

  • If your combined income is between $32,000 and $44,000, up to 50% of your benefits may be taxable.
  • If your combined income is above $44,000, up to 85% of your benefits may be taxable.

It’s important to note that no more than 85% of your benefits will ever be subject to taxation.

By continuing to work, you not only have the potential for increasing your future monthly Social Security benefit, but you should also monitor your income levels because they may affect how much of your benefits will be taxable.

@Rnininger 

Thanks for the question!

**Say “Thanks” by clicking the thumb icon in the post

**Mark the post that answers your questions by clicking on “Mark as Best Answer”