At 73 and Still Working Full Time, Can You Avoid Social Security Taxes?

A 73-year-old full-time worker earning more per week than at any earlier point in their career is raising a question that thousands of older Americans face: is there a legal way to avoid paying federal income taxes on Social Security benefits while still pulling a regular paycheck?

The concern is well-founded. Social Security benefits become partially taxable once a recipient's "combined income" — which the IRS calculates as adjusted gross income, plus nontaxable interest, plus half of annual Social Security benefits — crosses certain thresholds. For individuals, up to 50% of benefits may be taxed above one income level, and up to 85% above a higher threshold. Working full time in your seventies can easily push earnings past both lines.

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The tension here is real: continuing to work is financially rewarding, but every additional dollar of wages can drag more Social Security income into taxable territory. Strategies that financial planners commonly discuss in this context include contributing to tax-deferred or tax-exempt retirement accounts, timing withdrawals from various savings buckets carefully, and reviewing whether withholding adjustments can prevent a surprise bill at filing time — though the specific guidance for this reader's situation depends on the details MarketWatch's source explores more fully.

What makes this scenario particularly notable is the reader's own framing: they describe their current income as higher than it has ever been, which underscores a broader demographic shift as more Americans work well past traditional retirement age. Understanding how earned income interacts with Social Security taxation is increasingly relevant for a workforce that is aging but not necessarily stepping back.

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