For years, policymakers in both parties have raised questions about taxes on Social Security. Still, eliminating them could create problems for future beneficiaries.

Understanding how Social Security benefits are taxed can help you plan strategically for retirement and potentially save thousands in unnecessary taxes.

To see if they'll apply to you, you have to calculate your combined income, which is the total of your adjusted gross income, 50% of your annual Social Security income, and any non-taxable income you receive (for example, interest payments from municipal bonds, which are always federally tax-exempt).