At 73 and Still Working, Can You Dodge Taxes on Social Security?

Still punching the clock at 73 and pulling in more weekly income than ever? That's impressive — but the IRS notices. When you're collecting Social Security and earning a paycheck at the same time, your benefits can become taxable, and the threshold sneaks up faster than most people expect.

The rule that bites retirees here is called combined income — your adjusted gross income, plus nontaxable interest, plus half of your Social Security benefits. Cross $25,000 as a single filer or $32,000 as a married couple filing jointly, and up to 50% of your benefits get taxed. Push past $34,000 single or $44,000 joint, and that number jumps to 85%. If you're earning more than ever at 73, odds are you're already deep in that 85% zone.

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So what can you actually do about it? A few levers exist. Shifting some income into a Roth IRA — if you're still contributing or doing conversions — keeps future withdrawals out of your combined income calculation. Maxing out pre-tax 401(k) contributions through your employer lowers your AGI today. Timing deductions and charitable giving strategically can also chip away at the number that triggers the tax. None of these are magic bullets, but stacked together they add up.

The hard truth: if you're working full time at a strong salary and collecting Social Security simultaneously, fully escaping taxes on those benefits is unlikely. The system wasn't designed to give high earners a free pass. What you can do is manage the damage — keep your combined income as lean as possible and avoid getting blindsided at filing time by making estimated tax payments quarterly.

Talk to a tax professional before year-end, not after. Waiting until April to discover you owe a penalty on top of a big bill is a painful and totally avoidable mistake. Continue reading at MarketWatch.com