Retirement account withdrawals and earnings from a job may not be the only taxable income you have, either. The federal government taxes seniors' Social Security benefits if their income exceeds certain thresholds. If you live in one of the following nine states, you could owe some state Social Security benefit taxes as well.

If you are living in some US states, you have to pay state taxes on Social Security benefits as well. There are certain categories that are exempt from this rule. Take a look at which taxpayers do not have to pay state taxes on Social Security benefits in states like Colorado and New Mexico.

Social Security retirement benefits are subject to taxes in many cases. But familiarity with the rules and some advance planning can limit the impact.

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

Retirement is supposed to be about relaxation and enjoying the rewards of your hard work. But before you kick back, there's one thing you can't ignore: taxes. Understanding how your retirement income is taxed can help you keep more of your money and avoid any unwelcome surprises.