Thinking About Retirement? Here’s What to Know About Social Security

The best resource for information on Social Security is ssa.gov. Once you create an account (www.ssa.gov/myaccount), you can get a benefits estimate, check your eligibility, the status of your application, and even replace a lost Social Security card.

How Much is My Social Security Benefit?

Each year, the Social Security Administration (SSA) sends out paper statements containing your benefit estimates three months before your birthday if you are age 60+ and do not have an online account. If you have created an account, you can view your real-time estimates anytime by logging into your account at ssa.gov.

When and How are Benefits Paid?

Social Security benefits are paid out each month. The day of the month you receive your benefit payment depends on your birth date. Benefits are generally paid by direct deposit, and you can set up your bank account through your SSA account. Check out What You Need to Know When You Get Retirement or Survivors Benefits for more details on benefit payments.

Are Social Security Benefits Taxable?

Social Security benefits are federally taxable based on your income level as shown below. For purposes of this determination, income is calculated using your adjusted gross income (AGI) plus any non-taxable interest, plus half of your total Social Security benefits. To estimate your tax liability accurately, you can use the official IRS Interactive Tax Assistant or consult IRS Publication 915 for detailed worksheets.

Single / Head of Household / Qualifying Widow(er):

• Under $25,000: None of your benefits are taxable.
• $25,000 to $34,000: Up to 50% of your benefits are taxable.
• Over $34,000: Up to 85% of your benefits are taxable.

Married Filing Jointly:

• Under $32,000: None of your benefits are taxable.
• $32,000 to $44,000: Up to 50% of your benefits are taxable.
• Over $44,000: Up to 85% of your benefits are taxable.

Married Filing Separately:

• If you lived with your spouse at any point during the year, your benefits will almost certainly be taxable, regardless of the income amount.

State Income Tax:

As of 2024, neither Kansas nor Missouri tax Social Security at any income level. That’s the case for most states, but there are a handful of states where benefits are still taxable, so always check local guidelines for your specific state.

Applying for Social Security Benefits

You can apply from the SSA website at https://www.ssa.gov/apply.

When Should I Begin Taking Social Security?

This question completely depends on your personal situation. You can start collecting Social Security retirement benefits as early as age 62, but your monthly payments will be reduced by a certain percentage for each month you receive benefits before your full retirement age. That reduction in payments continues permanently. Your full retirement age depends on your birth year, and is age 67 for everyone born 1960 and later. To see how much benefits are reduced before full retirement age, see this page from the SSA website.

On the flip side, if you delay receiving benefits after your full retirement age, your benefits are increased by around 8% per year up to age 70.

When deciding whether to take Social Security benefits early, at retirement age, or delay to age 70, consider the following factors:

• Your Life Expectancy – obviously nobody knows how long they’ll live, but based on your health and the longevity of your family history, you might be able to delay benefits until the maximum payout at age 70. However, if you have health issues or a shortened life expectancy, it might be better for you to claim benefits early to collect over more years.

• Working in Retirement – If you take benefits before full retirement age, your work income could offset Social Security if you earn above certain thresholds. If you are under full retirement age for the entire year, SSA deducts $1 from your benefit payments for every $2 you earn above the annual limit (the 2026 annual limit is $24,480). For the year in which you reach full retirement age, SSA deducts $1 in benefits for every $3 you earn above a different limit – $65,160 in 2026. SSA only counts your earnings up to the month before you reach full retirement age, not your earnings for the entire year. More information is available here.