How can I lower the taxes on my Social Security?
If you can't change the IRS tax thresholds (frozen since the early 1990s) and you can't change your benefit amount, the only lever you have is your other income. Most retirees have more flexibility there than they think — and small adjustments timed right can save thousands over a multi-year retirement. Here's the toolkit.
Dr. Ed Weir, PhD · 20 years inside Social Security · "Former" Sergeant, USMC
Updated April 2026
How can I lower the taxes on my Social Security?
Lower the taxable percentage of your Social Security by lowering combined income. The five highest-leverage tactics: pre-claim Roth conversions, qualified charitable distributions (QCDs) starting at 70½, withdrawing from Roth instead of traditional IRAs, harvesting capital losses, and timing big income events (home sale, IRA withdrawals) into low-income years.
When you're ready for Medicare — usually at 65
Free help from licensed Medicare advisors
Most of these strategies also affect your Medicare premiums through IRMAA two years later. Lower combined income for Social Security tax usually means lower MAGI for IRMAA. Chapter Medicare can walk through the Medicare side. Tell them Dr. Ed sent you.
Here's what to do.
These five moves do the heavy lifting for most retirees. Pick the ones that fit your situation — don't try to use all of them at once.
1. 1. Pre-claim Roth conversions (the biggest single lever)
If you have a traditional IRA balance and you're between retirement and claiming Social Security, this is the single highest-leverage tax move. Each year you convert, you pay tax on the conversion amount in that year's bracket. Once converted, the Roth never re-enters the combined-income formula again — no matter how much you withdraw later.
The sweet spot: years you've stopped working but haven't claimed Social Security yet. Combined income is at its lowest, you can convert in the 12% bracket, and the converted balance grows tax-free forever. Many retirees who do this between ages 62 and 67 cut their lifetime tax bill on Social Security by 30 to 50%.
Roth conversion basics (IRS) › ›2. 2. Use QCDs to satisfy RMDs without raising AGI
Qualified Charitable Distributions go directly from your traditional IRA to a 501(c)(3) charity. They count toward your annual RMD, but they don't show up in your AGI — which means they don't count in the combined-income formula either. The maximum is $108,000 per person in 2025, indexed for inflation.
Starting at age 70½, if you give to charity at all, this is the single most efficient way to give. A $5,000 QCD effectively reduces your combined income by $5,000 compared to taking the same amount as a regular IRA withdrawal and donating it later. Multiply by years of giving and the savings compound.
QCD rules (IRS) › ›3. 3. Withdraw from Roth, not traditional, in high-income years
If you have both Roth and traditional IRA balances, the year you sell a house, take an inherited IRA distribution, or have an unusually high income event — withdraw any retirement money from the Roth, not the traditional. Roth withdrawals don't count in AGI, so they don't push more Social Security into taxation.
Reverse the rule in low-income years: if your combined income is well under $25,000 single or $32,000 joint, withdraw from the traditional IRA to use up low-bracket space. This is called "bracket filling" — you pay tax now at 10 or 12% rather than later at higher brackets when RMDs hit.
IRA withdrawal coordination (IRS) › ›4. 4. Don't fall for tax-strategy schemes that promise to make Social Security tax-free
Insurance salesmen and some "retirement planners" pitch annuities, life insurance schemes, or shelter products promising to eliminate Social Security taxation. Walk away. The 85% cap is in the federal statute — no product can repeal it.
Legitimate tax planning lowers your AGI through methods the IRS publishes (Roth conversions, QCDs, withdrawal sequencing). If a product or strategy promises something that contradicts what's in IRS Pub 915, it's either wrong, deceptive, or both. Always cross-check claims against irs.gov before signing.
IRS Pub 915 › ›Key 2026 tax-strategy numbers
Which of these sounds more like you?
Different ages and balance sheets need different tools. Find the situation that fits.
I'm retired but haven't claimed Social Security yetThis is the Roth-conversion sweet spot. Use it.
Between the day you stop working and the day Social Security starts, your combined income is usually at its lowest level of retirement. This is the highest-leverage window for Roth conversions. Pre-claim Roth conversions sized to fill the 12% bracket each year can move tens of thousands from "will be taxed when RMDs hit" to "never taxed again."
The math: a 65-year-old who converts $30,000/year at 12% from age 65 to 70 will pay about $18,000 in conversion tax — but eliminate all future Social Security tax torpedo and IRMAA exposure on that $150,000 over the rest of their lives. Most retirees who model it find it pays for itself in 6 to 8 years.
If I could give one piece of tax advice to retirees in their early 60s, it would be: don't claim Social Security yet, and don't sit on a pile of traditional IRA dollars doing nothing. Convert in the 12% bracket every year you can. Once Social Security starts and RMDs begin, your tax bracket creeps up and the conversion math gets worse every year.
I'm 73+ and already taking RMDs — plus I give to charitySwitch every dollar of your charitable giving to QCDs.
If you're already age 70½ and you give to charity, every dollar should go through QCDs from your traditional IRA — not from your checking account. QCDs count toward your RMD, never appear on your AGI, and never raise your combined income for Social Security tax purposes.
The practical setup: tell your IRA custodian to issue a check directly to the charity from your IRA. Don't have it routed through your checking account first — that's not a QCD. Most custodians have a one-page form. Keep the receipts; the charity will send a written acknowledgment that satisfies IRS documentation.
I'm selling my home this yearTime the sale and use the home-sale exclusion to keep AGI in check.
The federal home-sale exclusion lets a single filer exclude up to $250,000 of gain ($500,000 for MFJ) on a primary residence — the gain doesn't appear on your AGI. So most home sales don't blow up combined income. The risk is when the gain exceeds the exclusion or when you're selling a second home or rental.
In high-gain years, time other discretionary income (Roth conversions, IRA withdrawals beyond RMDs) into a different year. Harvest capital losses from your taxable brokerage account to offset any gain that exceeds the exclusion.
I have a large traditional IRA and I'm worried about RMDsMulti-year Roth conversion plan plus QCDs once you're 70½.
Big traditional IRA balances at age 73 mean big RMDs that flow into AGI and push 85% of Social Security into taxation — plus often into IRMAA territory. The fix is layered: pre-claim Roth conversions to drain the traditional balance into Roth (which never affects combined income again), then QCDs at 70½ to redirect any RMDs that would have raised AGI.
A serious tax planner can run a 10- or 15-year projection showing exactly how much to convert each year to keep you under the second Social Security threshold for life. The earlier you start, the more flexibility you have.
I have both Roth and traditional accountsLet your withdrawal source vary year-by-year based on income.
If you have Roth and traditional, withdrawals can be coordinated to manage AGI year-by-year. High-income years: withdraw from Roth (no AGI impact). Low-income years: withdraw from traditional (use up low-bracket space). Average income years: a mix.
This isn't "set it and forget it." Each year's withdrawals should be informed by that year's other income — wages, capital gains, lump sums, RMDs, charitable plans. A simple spreadsheet model usually catches the right answer for a given year.
I have stock losses I haven't realizedTax-loss harvesting offsets capital gains and up to $3,000 of ordinary income.
Selling investments at a loss in your taxable brokerage account creates capital losses that offset capital gains dollar-for-dollar, plus up to $3,000/year against ordinary income. Both reduce AGI — and therefore combined income.
Watch the 30-day wash sale rule: don't buy a substantially identical security within 30 days of the loss sale or the loss is disallowed. Easy fix: swap S&P 500 fund A for S&P 500 fund B; close enough to maintain market exposure but different enough to not be "substantially identical."
I want to build a 5- or 10-year tax planBuild a multi-year projection with a fee-only CFP or tax-focused EA.
A real multi-year tax plan layers Roth conversions, withdrawal sequencing, QCDs, capital-gain harvesting, and Social Security claiming timing into one model. Each lever affects the others. The math gets technical fast.
A fee-only CFP with retirement-income chops, or an enrolled agent who specializes in multi-year tax planning, can model this for you. Expect to pay $1,500 to $5,000 for a comprehensive plan; most retirees recoup it in the first 1 or 2 years of execution. Re-check the plan every 2 to 3 years as tax laws and your situation change.
I can show you the levers and the math behind each. I can't tell you the right multi-year mix for your specific household — that's tax planning, and personalized tax advice needs licensure. Use NAPFA.org for fee-only CFP search. The IRS Directory of Federal Tax Return Preparers lists EAs.
I'm helping a family member figure out their tax planBystander — I'm not the one filing
The first move is information gathering: pull last year's Form 1040 line 6b (taxable Social Security) and the SSA-1099. Then pull the most recent traditional IRA / Roth IRA / brokerage account statements. Then list any charitable giving and home-sale plans.
With those four data points you can identify which one of the five strategies above fits best — and bring that to a fee-only CFP or EA for execution. Don't try to apply more than one major change at a time; tax-planning errors compound.
Lower combined income often unlocks programs you haven't heard of.
Strategies that lower your taxable Social Security usually also lower your AGI for other benefits programs. Worth checking eligibility once your tax plan is set.
Medicare Savings Program (MSP)
Lowering your AGI through Roth conversions in the years before claiming Medicare can also help with MSP eligibility down the line. The income limits use a different calculation, but lower AGI is usually directionally helpful.
Extra Help (Low Income Subsidy)
Tax strategies that lower combined income may also help with Extra Help eligibility. SSA administers Extra Help with its own income test, but lower AGI is generally favorable.
Medicaid
If you're trying to manage taxable Social Security and your income is borderline, your state's Medicaid threshold may also be in reach. Check your state's senior or expansion-state Medicaid rules.
SNAP (Food Benefits)
If you're using QCDs and Roth withdrawals to keep AGI low for Social Security tax purposes, that same low AGI may also qualify you for SNAP. Worth a 10-minute pre-screen.
LIHEAP (Energy Bill Help)
LIHEAP uses gross household income, but lowering AGI through Roth and QCD strategies often correlates with lower gross income for LIHEAP purposes too.
Property Tax Relief
Many state senior property-tax relief programs use AGI thresholds. Tax planning that lowers AGI can also unlock or preserve eligibility for state property-tax circuit-breaker credits.
Everything people ask me
What's the single highest-impact move?
Pre-claim Roth conversions for retirees with traditional IRA balances who haven't yet started Social Security. The window between retirement and the first Social Security check usually has the lowest combined income of your retirement years. Converting in the 12% bracket during that window moves balances out of the combined-income formula forever.
Are QCDs really that powerful?
Yes, if you're already 70½ and you give to charity. A QCD goes directly from your traditional IRA to a 501(c)(3), counts toward your annual RMD, and never appears on your AGI. If you give $5,000/year to charity, replacing checkbook donations with QCDs can save several hundred dollars per year in Social Security and IRMAA taxes — compounding over decades.
Can I just put money in tax-exempt municipal bonds to lower my Social Security tax?
No — actually, the opposite. Tax-exempt bond interest is added back into the combined-income formula by IRC §86. So while the interest is excluded from regular taxable income, it still pushes more of your Social Security into taxation. Munis can make sense for other reasons but not for managing Social Security tax.
What about annuities — can they shelter my income?
Some annuity types defer income, but the moment the income is received, it counts toward AGI. Variable and fixed deferred annuities don't "shelter" Social Security from tax — they just shift when the AGI hit happens. Be skeptical of annuity pitches that claim to make Social Security non-taxable. The 85% statutory cap can't be repealed by a private product.
Does delaying Social Security itself help with taxation?
Not directly — the same combined-income rules apply at any claiming age. But delaying creates a window for Roth conversions in your low-income gap years before benefits start. So delaying claiming AND converting traditional IRA to Roth during the gap is the synergy that creates the most tax savings.
When are RMDs required, and why does it matter for my Social Security tax?
Under SECURE 2.0, RMDs from traditional IRAs and 401(k)s start at age 73 for those born 1951 to 1959, and 75 for those born 1960 or later (effective 2033). Once RMDs start, they flow into your AGI and combined income, often pushing 85% of Social Security into taxation overnight. Pre-claim Roth conversions reduce the future RMD base — the earlier you start, the more you can move.
What's the catch with tax-loss harvesting?
The 30-day wash sale rule. If you sell at a loss and buy a substantially identical security within 30 days (before or after), the loss is disallowed. The fix: sell the losing fund and buy a different fund tracking a similar but distinct index. The losses then offset gains and up to $3,000 of ordinary income, lowering AGI.
Can the strategies on this page also lower IRMAA?
Yes — most of them. Roth conversions, QCDs, withdrawal sequencing, and tax-loss harvesting all lower MAGI. Lower MAGI means a lower IRMAA tier two years later. Many retirees who tax-plan around Social Security accidentally also save on Medicare premiums. Just remember the 2-year lookback: this year's MAGI sets your 2028 IRMAA.
Should I pay a planner to do this for me?
If your traditional IRA balance is well into six figures and you're between 60 and 73, almost certainly yes. A multi-year tax projection from a fee-only CFP or a tax-focused enrolled agent typically costs $1,500 to $5,000 and saves $10,000+ over 5 years for retirees with modest IRA balances. The math goes up sharply for larger balances.
Where do I find a fee-only CFP or an enrolled agent?
NAPFA (napfa.org) lists fee-only Certified Financial Planners by zip code. The IRS Directory of Federal Tax Return Preparers (irs.treasury.gov/rpo/rpo.jsf) lists enrolled agents and CPAs. Garrett Planning Network (garrettplanningnetwork.com) is another fee-only CFP source. "Fee-only" is the keyword — it means they don't sell products, just charge for advice.
Sources
Every figure and rule on this page is verified against primary sources. Last verified 2026-04-26.
- IRMAA (Income-Related Monthly Adjustment Amount) thresholds for Medicare premiums use modified adjusted gross income from two years prior. —medicare.gov(verified 2026-05-08)
- A Roth conversion moves pre-tax retirement money into a Roth account; the converted amount is added to taxable income in the year of conversion. —law.cornell.edu(verified 2026-05-08)
- Qualified Roth IRA distributions (after age 59½ and 5+ years of holding) are excluded from gross income. —law.cornell.edu(verified 2026-05-08)
- Qualified Charitable Distributions (QCDs) are available beginning at age 70½ and count toward the year's RMD without raising AGI. —law.cornell.edu(verified 2026-05-08)
- The annual QCD limit is $111,000 per individual in 2026, indexed annually for inflation under SECURE 2.0. —law.cornell.edu(verified 2026-05-08)
- Under SECURE 2.0 (2022), the RMD start age is 73 for taxpayers born 1951–1959 and 75 for those born 1960 or later (effective 2033). —irs.gov(verified 2026-04-29)
- Capital losses offset capital gains dollar-for-dollar plus up to $3,000 per year of ordinary income; excess losses carry forward indefinitely. —irs.gov(verified 2026-04-29)
- The wash sale rule disallows a capital loss when a substantially identical security is purchased within 30 days before or after the sale. —irs.gov(verified 2026-04-29)
- The federal home-sale exclusion under IRC §121 allows a single filer to exclude up to $250,000 of gain ($500,000 for married filing jointly) on a primary residence. —law.cornell.edu(verified 2026-04-29)
- Tax-exempt municipal bond interest is added back into combined income for purposes of taxing Social Security benefits. —law.cornell.edu(verified 2026-04-29)
- QCDs must be transferred directly from the IRA custodian to the qualified charity to qualify for the AGI exclusion; pass-through to a personal account disqualifies the QCD. —law.cornell.edu(verified 2026-05-08)
- Annual capital-loss deduction against ordinary income is capped at $3,000 ($1,500 if married filing separately) per IRC §1211. —law.cornell.edu(verified 2026-04-29)
- Roth conversions taxed at the conversion-year marginal bracket but never re-enter AGI when withdrawn after qualification. —law.cornell.edu(verified 2026-05-08)
- NAPFA (napfa.org) is the National Association of Personal Financial Advisors, a directory of fee-only Certified Financial Planners. —napfa.org(verified 2026-04-29)
- The IRS Directory of Federal Tax Return Preparers lists enrolled agents (EAs) and CPAs by location and credential type. —irs.treasury.gov(verified 2026-04-29)
- Garrett Planning Network (garrettplanningnetwork.com) is a directory of fee-only CFPs offering hourly retirement-planning advice. —directory.garrettplanningnetwork.com(verified 2026-05-08)
I'll let you know when the rules change.
If Congress changes the QCD age or amount, the RMD start age, or the Social Security combined-income thresholds, this entire toolkit changes. I'll send a note when any of those move.
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