Dear Rusty: I’m just trying to figure out how to determine whether to retire at 65 or 67 and, if I retire, approximately how much could I make outside of my Social Security without being overly taxed. Signed: Thinking About Retiring Dear Thinking: Deciding when to retire is serious business, because it affects your future and what your retirement income will be going forward. Thus, it’s good you are taking the time to fully understand your options, and we’re happy to assist you with that. Here are some things which should help you decide whether to retire at 65 or 67: · Social Security benefits are subject to income tax (by the IRS) if your combined income from all sources (which includes your Adjusted Gross Income on your tax return, plus half of the SS benefits you received during the tax year) exceeds certain thresholds for your income tax filing status. If you file your income tax as “married/ jointly” and your combined income from all sources is more than $32,000, then 50% of your received SS benefits are subject to income tax (at your normal IRS tax rate). But if your combined income as a married couple is more than $44,000, then 85% of the SS benefits you received during the tax year becomes part of your taxable income. FYI, the taxation thresholds are lower for those who file taxes as an individual ($25,000 and $34,000 respectively).