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.

Eliminating taxes on Social Security benefits would provide current beneficiaries with thousands more dollars but could cause younger generations to lose thousands in benefits.

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.

There's not much to look forward to except the hope of a tax refund at tax time. Learn More: 8 States To Move to If You Don't Want To Pay Taxes on Social Security Try This: 3 Sneaky Things

The first round of March’s Social Security payments, worth up to $5,108 for the highest-income earners who retire at age 70, will go out to the final group of retirees in nine days. Here is all you need to know about this month’s Social Security payments.

Taking benefits at age 70 results in the largest monthly payday you can get. It may not result in the most lifetime income, though. Look at the big picture to decide when to sign up for Social Security.