Is my Social Security income taxable? Guidelines to follow for the 2026 tax season.
Are your Social Security benefits taxable? For many Americans, the answer is yes.
Are you nearing retirement and considering signing up for Social Security? There are some important numbers to keep in mind, especially if you want to receive the largest monthly check possible.
Most of us associate retirement with age 65. However, Social Security considers age 66 to be the “full retirement age” for people born between 1943 and 1954 to receive unreduced benefits. Were you born after? The full retirement age for people born after 1960 is 67, so your full retirement age is several months higher.
Another date to consider is age 62. That’s because you can actually start receiving Social Security benefits at that age. According to the Social Security Administration’s website, you can enroll when you’re 61 years and 9 months old, so you won’t start receiving benefits until you turn 62. However, if you wait until you reach retirement age, your benefit amount will be reduced.
“For example, if someone is eligible for $1,000 per month at full retirement age but retires at age 62, their monthly benefit could shrink to $700,” according to personal finance site Nerdwallet.
The longer you delay filing your Social Security claim, the more you will pay. If you wait until age 70, you’ll get the highest amount. For example, those who wait until age 70 to claim Social Security benefits will pay 124% of what they would have received if they claimed benefits at age 67, according to investment firm Charles Schwab.
What is the full social security retirement age?
To receive considered full Social Security benefits, you must wait until at least “full retirement age,” but this age has changed over the years. In 1983, President Ronald Reagan signed legislation that gradually raised the retirement age as a way to strengthen Social Security.
The law achieves its goal of raising the full retirement age to 67 for people born after 1960 in 2027. The full retirement age for people born after 1943 is: You can also check the Social Security Administration website.
- 1943-1954: 66 years old
- 1955: 66 years 2 months
- 1956: 66 years 4 months
- 1957: 66 years and 6 months
- 1958: 66 years 8 months
- 1959: 66 years 10 months old
- After 1960: 67 years old
When is the best time to retire to receive Social Security?
Deciding when to retire and apply for Social Security is a personal decision and usually involves many factors. But the longer you wait to enroll in Social Security, the larger your monthly check will be, and eventually your spouse’s check will be larger as well. According to AARP, enrolling in Social Security before full retirement age “could reduce your monthly payments by up to 30%.” According to NerdWallet, as of June 2025, the average monthly Social Security retirement benefit for a 62-year-old retiree was $1,377.03, compared to $1,962.63 for a 67-year-old retiree.
“After age 62, if you delay claiming until age 70, you’ll receive more benefits each month,” Gal Wettstein, senior research economist at Boston University’s Center for Retirement Research, previously told USA TODAY.
Imminent social security funding crisis
For some people, it may be worth filing early because Social Security is facing an impending funding shortfall and won’t be able to pay out 100% of benefits for the next few years unless Congress takes some action to address the shortfall.
The Social Security Administration’s main trust fund for paying retirement benefits is expected to run out as early as 2022, according to the Bipartisan Policy Center. Centrist groups say this is even faster than expected due to the passage of President Donald Trump’s blockbuster bill, which includes $4.5 trillion in tax cuts over 10 years. There have been discussions about raising taxes and raising the full retirement age to make Social Security more flexible.
Americans of all ages are concerned about the viability of Social Security, which currently pays benefits to more than 74 million Americans.
The longevity of the program has divided generations, with 53% of Americans under 30 saying they shouldn’t be subject to tax increases, even if it means lowering benefit checks for beneficiaries, according to a recent survey conducted by the Cato Institute and YouGov. Most respondents (89%) over the age of 65 say current retirees’ benefits should be protected, even if it means raising taxes on younger workers.
According to the Cato Institute/YouGov report, Social Security is “on an unsustainable path and will require significant reform if Americans are to avoid benefit cuts of approximately 25% over the next decade.” “Most people recognize that Social Security is facing financial difficulties, but they underestimate the size of the shortfall and don’t really understand its root causes.”
Mike Snyder is a national trends news reporter for USA TODAY. You can follow him on Threads, Bluesky, and X, and email him at: mike snyder & @mikegsnider.bsky.social & @mikesnider & msnider@usatoday.com
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