Why Retirees Owe Taxes on Social Security (and How to Owe Less)

Why do some retirees owe taxes on Social Security — and why do many owe nothing? The "combined income" formula, three real-number examples (including the tax torpedo), state taxes, the new senior deduction, and 5 ways to owe less. 0:00 Do you really pay tax on Social Security? 0:51 The one formula that decides it 2:00 Example 1: Gloria owes $0 3:06 Example 2: Gloria owes about $605 4:01 Example 3: the tax torpedo 5:05 Why many couples owe nothing 5:40 State taxes 6:05 5 ways to owe less 8:03 What the new senior deduction changed 8:41 The bottom line SOURCES (direct links coming soon) • IRS Publication 915 (Social Security and equivalent railroad retirement benefits) • SSA — income taxes and your Social Security benefit • IRS — 2026 standard deduction and tax brackets • IRS — the new enhanced deduction for seniors • Kiplinger — states that tax Social Security in 2026 • IRS Form W-4V (voluntary withholding) • IRS — qualified charitable distributions Gloria, Mike and Donna are illustrative examples, not real people. Examples use 2026 federal figures for a single filer / married filing jointly, all income from Social Security and traditional IRA withdrawals, and ignore state taxes. Not tax advice. Not affiliated with the IRS. Walt is a narrator character with an AI voice. Examples are illustrative, not real people. Education only — not financial, tax or legal advice. Not affiliated with the Social Security Administration or any government agency.