Non-taxable means you don't have to pay tax on the benefits.
The formula for calculating how much of your Social Security benefits are non-taxable is extremely convoluted and involves re-calculating your taxes and adding back in certain non-taxable payments like municipal bond interest and depends on your marital status and filing status. Anywhere from 15% to 100% of your Social Security benefits can be non-taxable. If you really want the details, refer to the worksheet on page 27 of the Form 1040 instructions:
http://www.irs.gov/pub/irs-pdf/i1040.pdf
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The government taxes for most social security benefits. If you make no money, then you don't have to pay taxes for social security.