How Can I Lower Taxes on My $2,800 Monthly Social Security Benefit?

Article excerpt

A Social Security recipient earning $2,800 monthly faces a tax bill on those benefits and wonders how to reduce it. The answer depends on income thresholds: single filers who earn more than $25,000 in combined income (including half their Social Security) may owe taxes on up to 85% of benefits. Strategies include working with a financial advisor to time retirement, manage other income sources, or consider municipal bonds for tax-free income. The IRS taxes Social Security differently than wages, making careful planning worthwhile for those near the thresholds.