4. Avoiding the Social Security tax

If you want to have more money during retirement and you plan to work, then be careful about how your taxes can increase. This happens if you are also receiving Social Security benefits at the same time. Federal taxes may be due on a portion of your benefit payout, ranging from 50% to 85%.

The IRS will multiply your adjusted gross income (AGI) by your nontaxable interest and 50% of your Social Security income to calculate how much of the money you receive will be taxed.

Up to 50% of your Social Security benefits may be taxed if the sum falls between $25.000 and $34.000 for single taxpayers and $32.000 and $44.000 for joint filers. If you are a single filler and you get more than $34.000, or for joint fillers, more than $44.000, then as much as 85% of your benefits might be taxed.

Thinking about how to distribute your income from various sources in order to avoid any increases that would result in a higher tax might help you avoid getting your Social Security income taxed.