Vawn Himmelsbach

Wed, Jun 25, 2025, 9:00 AM7 min read

Your friend’s cousin on Facebook may be a smart guy, but since he’s not a tax expert, you might want to avoid taking advice from him on the latest Social Security benefit rules.

If you have questions about Social Security, your best bet for information is the Social Security Administration (SSA) website or your financial advisor.

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Still, there are hundreds of friend’s cousins out there propagating myths about Social Security on social media. Here are three persistent myths that could wind up hurting your retirement.

Most Americans don’t have a retirement tax plan, according to a Northwestern Mutual study. If you’re one of them, it could be worth speaking to a financial advisor, since minimizing the taxes you pay in retirement can have a material impact on how much money you’ll have to spend.

One thing you’ll need to account for is that Social Security benefits may be taxed — contrary to a common myth that they’re not. The Internal Revenue Service (IRS) has a tool to help you determine, based on your gross income and the type of benefits you’re receiving, whether your benefits are taxable. The IRS also publishes a guide to help you calculate the taxes you might owe.

In general, how much you’ll be taxed on your benefits will depend on your income and filing status. To determine whether your benefits are taxable, add half the amount of benefits you’ve collected during the year to your other income, which may include pensions, wages, dividends, interest and capital gains. If you’re married and filing jointly, then take half of each spouse’s Social Security benefit and add that to your combined income.

According to the IRS, half of your benefits may be taxable if:

• You’re single, the head of a household or a qualifying widow or widower (with an income of $25,000 to $34,000).

• You’re married but you and your spouse lived apart for the tax year and are filing separately (with an income of $25,000 to $34,000).

• You’re married and filing jointly (with a combined income of $32,000 to $44,000).

Up to 85% of your benefits may be taxable if the calculated income exceeds the upper range in any of the above cases, or if you’re married and filing separately but you lived with your spouse at any point during the tax year.