Many retirees are surprised to learn that their Social Security benefits can be subject to federal income tax. The IRS determines the taxable portion based on what it calls your “combined income.” Understanding this formula can make a meaningful difference in how much income you keep during your post-career years.

President Trump’s “big, beautiful bill” is sending mixed messages about whether most Americans are required to pay federal income taxes on their Social Security benefits.

The Social Security Administration says most won’t pay federal income taxes on their benefits. But Congress didn’t directly exempt those payments from taxes.