Social Security serves as a key income source for millions of retired Americans, but some might be surprised to learn that their benefits may not be theirs to keep in full. Social Security benefits are taxed at the federal level.

Tax season can be confusing for retired workers and other Social Security recipients. Benefits can be taxed at the federal and state levels, but the taxable portion of Social Security income varies based on income.

Social Security benefits are handled differently than regular income by the IRS, which can make tax season tricky.