Social security is means tested. if you make more than what's allowable, typically 1/2 social security + taxable Income reaches $25,000, it becomes subject to taxation. That's for a single person! If married, not sure what happened to taxes being equal, the number slides to $34,000 before being subject to taxes. I quess that is what we call the 'MARRIAGE PENALTY TAX'.
Fortunately, most states don't tax this amount as does the Feds.
To be sure, if these amounts are reached, one should complete the form W-4P
With this form, you can have 7, 10, 12, 22% withheld from your social security. These amounts add to the federal taxes withheld from pensions, w-2s and the like,
The maximum amount of Social Security that is subject to taxation is 85%.
Good Luck to You!
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