Ways to avoid paying taxes on Social Security benefits. Before we dive into some ways to potentially reduce your tax burden, it’s good to remember that the portion of your benef

What you want to do is get ahead of the problem. First, pay as much as you can upfront, even if it's not the full amount. This will reduce your outstanding balance, which will be subject to a 0.5% monthly failure-to-pay penalty, up to a maximum of 25% of the unpaid amount.