7. How to Live on Social Security Alone: Watch Out for Social Security Taxes
Having Social Security as your only source of retirement income may sound daunting, but the good news is that you most likely won’t have to pay taxes on it.
Nonetheless, if you have another source of retirement income, a certain part of your monthly benefit may become taxable. If the sum of half of your Social Security benefit, your adjusted gross income, and nontaxable interest exceeds $25,000 for individuals and $32,000 for couples, 50% of your benefit could be taxable.
If your source of retirement income exceeds $34,000 (for couples, the threshold is $44,000), up to 85% of your benefit could be taxable.
You may also want to read Affordable U.S. Cities: 4 of the Best Ones for Retirement.
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