Taxes are, unfortunately, a part of life, and it's hard to escape them even in retirement.

Your Social Security benefits may be subject to both state and federal income taxes, which can take a substantial bite out of your monthly payments.

While it may be tough to avoid taxes, if you're expecting to depend on your benefits in retirement, it pays to understand how they'll affect your income. And there's one sneaky tax rule that could shrink your future benefits. Here's what you need to know.

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Source Fool.com