Guide to Preparing for Social Security Benefit Taxes in 2025

Economy

1 year ago

News sources:

Credited from: USATODAY

The average **Social Security benefit** is projected to reach **$1,976 per month** in January 2025, potentially exceeding **$2,000** later in the year.
Some retirees may owe **federal income taxes** on their Social Security benefits if their **provisional income** exceeds set thresholds based on marital status.
Strategies to potentially avoid these taxes include reducing **withdrawals from retirement accounts** or utilizing **Roth savings** for tax-free withdrawals.
Retirees can **prepare** for Social Security taxes by either setting money aside or requesting the **Social Security Administration** to withhold a portion of their benefits for taxes.
It's important to consider **state income taxes** on Social Security benefits, which vary by state, potentially impacting the total tax burden in 2025.

For the full article, visit USA Today.