There is no specific age (65, 70, or 72) at which Social Security benefits automatically become tax-free. Taxability depends on income, not age
People mistakenly associate Social Security tax rules with Required Minimum Distributions (RMDs) at age 73 or Full Retirement Age (FRA) at 66-67, but these do not determine taxability.
If Social Security is your only income, it's usually not taxed. However, if your combined income exceeds $25,000 (single filers) or $32,000 (married filing jointly), up to 85% of benefits may be taxable.
Delaying benefits until FRA increases your monthly check but could also raise your total income, making more of your Social Security subject to tax
You can lower taxable income through strategic retirement withdrawals, Qualified Charitable Distributions (QCDs), or investing in municipal bonds to reduce exposure to Social Security taxes
While the federal government taxes Social Security based on income, some states also tax benefits. Be aware of your state's tax policies
Some lawmakers and presidential candidates have proposed eliminating federal taxes on Social Security. Keeping up with legislative updates and consulting a tax professional can help with long-term tax planning