It depends. The concept behind taxable social security is simple enough, but the actual formula is anything but simple. However, if you plan things well, you may be able to utilize a significant amount of income tax-free. This link: Social Security Benefits Worksheet - IRS.gov provides a worksheet to help you determine the exact amount in your case.
To find out how much income you may draw before your social security is taxable, combine the amount of social security income you and your wife will receive, and divide the amount in half. Then, add in the other income you expect to receive. If one half of your social security plus potential other income is more than 32,000, some of your social security will be taxable. However, it still might not be taxed. The reason is that, even when you combine the taxable social security with the potential income, you still may be under the filing threshold. If that is the case, not only are you not taxed, but you don't even have to file.
However, once you hit the point that you start seeing enough taxable income to file, your tax liability accelerates rapidly. This is because the more income you draw (which by nature is taxable), the more taxable social security it is creating at the same time. And you can get to a point where up to 85% of your social security benefits get taxed, which is especially difficult if you are in higher tax brackets.
Having said this, I have seen cases in which between the social security and pension plan, the couple could draw over 50,000 total without any of it being taxed. If you provide me your ages and your total social security for the year, I can assist you to get an idea on your situation as well.
This information is Federal Taxability only. Your state may have a different set of rules for what is and is not taxable.
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