Is Social Security income taxable? The short answer is yes – money that you receive through Social Security benefits may be taxed.
However, whether or not your benefits will be taxed depends on how much total income you make. Moreover, the income threshold for having your benefits taxed changes based on whether you are filing as an individual, married and filing jointly, or married and filing separately. At a maximum, up to 85% of your Social Security benefits can be taxed – but depending on your situation, as little as 0% of your benefits may be taxed.
If you recently started receiving Social Security income and want to learn more about your tax obligations, we’ve got you covered. We’ll break down everything you need to do when tax season arrives, so you can make sure you are paying the taxes you owe on time. Keep reading to learn more about Social Security and taxes.
- Social Security income tax for different filing statuses
- How to calculate your income for Social Security taxation
- What types of Social Security income are taxable?
- How to file Social Security income on your federal taxes
- How to file Social Security income on your state taxes
- State tax rates for Social Security benefits
- Do Roth IRAs impact Social Security taxes?
- Tips for reducing taxes on Social Security income
- Social Security income and taxes: FAQs
- The bottom line
Social Security income tax for different filing statuses
Do you have to pay taxes on Social Security? The amount of tax you owe on Social Security depends on your combined income, which is equal to 50% of the benefits you receive plus 100% of any other income you earn. This applies to any income you accumulated during the tax year you are filing.
Tax filing status has a big impact on how much of Social Security is taxable. Here are the most common filing options and the income thresholds for taxation.
Single, head of household, or qualifying surviving spouse
If you are filing as single, a head of household, or a qualifying surviving spouse, you are not taxed if your combined income is below $25,000. As long as your annual combined income is less than $25,000, you do not have to worry about paying taxes.
If you make between $25,000 and $34,000, you may need to pay taxes on up to 50% of your Social Security benefits. If your income is more than $34,000, you may need to pay taxes on up to 85% of your benefits.
Married filing jointly
Taxpayers who are married and filing jointly are not required to pay Social Security taxes as long as their combined income is lower than $32,000. If you meet the $32,000 threshold, the amount of income you are required to pay taxes on may vary.
If you and your partner have a combined income between $32,000 and $44,000, you may need to pay taxes on up to 50% of your Social Security benefits. If your combined income is more than $44,000, you may need to pay taxes on up to 85% of your benefits.
Married filing jointly
Couples who are married but file separately can typically expect to pay income taxes on Social Security benefits.
If you lived apart from your spouse during the tax year with more than $34,000 in benefits or lived with your spouse during the tax year, you must pay taxes on 85% of your benefits.
If you are married and filing separately and lived apart from your spouse during the tax year while receiving $25,000 to $34,000 in benefits, you owe taxes on 50% of your benefits.
How to calculate your income for Social Security taxation
How much is your Social Security taxed? To clearly understand how much of your Social Security income is taxable, it’s important to know how your total income is calculated.
Here’s how it works:
- Determine adjusted gross income (AGI). This combines Social Security income with all other income sources. These sources can include wages, self-employment income, dividends, interest, and other forms of taxable income.
- Add tax-exempt interest to the AGI (even though this interest isn’t taxable.) If this total amount is more than the minimum income threshold for your filing status, 50% of your Social Security benefits (or more) will be considered taxable.
- Choose to either take the standard deduction or itemize deductions. This will provide you with your net income. The exact amount of tax you owe will depend on where your net income lines up in the income tax table.
What types of Social Security income are taxable?
Many other government benefit programs follow tax guidelines that are similar to those used for Social Security benefits. However, it’s important to note that Supplemental Security Income (SSI) program benefits are not taxable.
Let’s take a closer look at several common types of benefits and how they are taxed.
Spousal Benefits
Taxes for spousal benefits are handled the same way that Social Security benefits are. Even if your spouse is collecting benefits but you aren’t, you may be taxed on 50% of benefits if your joint income is above $32,000, and taxed on up to 85% of benefits if your joint income is over $44,000.
Disability Benefits
Disability benefits are taxed in the same way as Social Security benefits. If you meet a certain threshold, the benefits will be taxed. If you are filing as Single, at least 50% of you benefits will be taxed if your income exceeds $25,000. If you’re married and filing jointly, at least 50% will be taxed if your combined income exceeds $32,000.
Survivor Benefits
Survivor benefits are rarely taxed because children do not usually meet the required income threshold. Survivor benefits are only taxable if half of the child’s benefits plus their additional income is greater than $25,000. If the survivor benefits are a child’s only source of income, they are not taxable.
How to file Social Security income on your federal taxes
In order to figure out if you need to pay federal income tax on your Social Security benefits, you will need to have a record of the total amount of benefit money you have been paid over the course of the year. Each January, the government will mail you a tax form called SSA-1099 – this form will show the total amount of benefits that you received during the previous year.
If you are above the threshold for taxation on your benefits, you have the option of having these owed taxes withheld from future payouts. In order to request withholding, you will need to complete form W-4V. As an alternative, you can pay quarterly tax bills to cover any taxes that are owed on benefits.
When tax season arrives, you can report your Social Security income by filing Form 1040, U.S. Individual Tax Return. Seniors can file Form 1040-SR. This is the form you use to report your Social Security income so you can determine how much you owe in taxes. Understanding how much of your Social Security is taxable and how much you typically owe can help you create a financial budget.
In some states, you may also be required to pay state taxes on Social Security benefits. Currently, 39 states do not tax Social Security benefits and 11 states do.
How to file Social Security income on your state taxes
If you reach the income thresholds discussed above, you will need to pay federal taxes on your Social Security benefits – regardless of the state you live in.
While most states do not tax Social Security benefits on a state level, some do. Take a look at the table below to learn more about how Social Security benefits are taxed on a state level:
States that tax Social Security benefits:
| How states tax Social Security benefits | State |
| Social Security benefits taxed using federal rules | Minnesota and Utah |
| Social Security benefits partially taxed with exemptions based on age and income | Colorado, Connecticut, Kansas, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Vermont, and West Virginia |
| Social Security benefits not taxed on a state level | Alabama, Alaska, Arizona, Arkansas, California, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington, Washington, D.C., Wisconsin, and Wyoming |
States that tax Social Security benefits will have specific guidelines for filing Social Security income. It is best to review your state’s requirements in order to meet your tax obligations.
State tax rates for Social Security benefits
Several states tax Social Security benefits without using federal tax rules. You can learn more about how state taxes on Social Security benefits work below:
Colorado
Taxpayers between the ages of 55 and 64 are taxed on any benefits exceeding $20,000. Taxpayers ages 65 or older are not taxed.
Connecticut
If your AGI is at least $75,000 ($100,000 if married and filing jointly), you must pay taxes on Social Security benefits. You may qualify for an exemption equal to up to 25% of your benefits.
Kansas
Any taxpayer with an AGI of at least $75,000 will have their Social Security benefits taxed in Kansas.
Minnesota
In Minnesota, you are taxed on Social Security benefits if your AGI is over $82,190. This limit changes to $105,380 if married and filing jointly and $52,690 if married and filing separately.
Montana
In Montana, Social Security benefits are taxed when your AGI is at least $25,000. If you are married and filing jointly, the threshold increases to $32,000.
New Mexico
Any taxpayer with an income of at least $100,000 is taxed on Social Security benefits. The limit is $75,000 if married and filing separately and $150,000 if you are filing as a head of household, surviving spouse, or married and filing jointly.
Rhode Island
In Rhode Island, you are usually taxed on Social Security benefits if you receive benefits before the full retirement age or have an AGI of at least $101,000.
Utah
Taxpayers who make at least $45,000 ($75,000 if married and filing jointly) owe taxes on Social Security benefits.
Vermont
In Vermont, you owe taxes on Social Security if your AGI is above $60,000. If your AGI is between $50,000 and $59,999, you qualify for a partial exemption.
West Virginia
In 2024, taxpayers can subtract 35% of their Social Security benefits from their annual income when calculating their state taxes. Taxpayers can subtract 65% in 2025 and 100% of their benefits in 2026.
You can visit AARP to learn more about how different states tax Social Security benefits.
Do Roth IRAs impact Social Security taxes?
A Roth IRA—or “Individual Retirement Fund”—is a type of fund that allows you to pay taxes on your savings up front, and then have this money grow tax free over time.
If your Roth IRA has been in place for over 5 years and you are over the age of 59 ½, you can begin to make withdrawals from your account without having to pay taxes on the withdrawn money.
If you have a Roth IRA and meet these conditions, withdrawals from your Roth IRA don’t need to be included as income when figuring out if your Social Security benefits are taxable.
Tips for reducing taxes on Social Security income
Here are some tips for reducing taxes on your Social Security income:
- Lower your combined income. Your Social Security income tax liability is typically based on your combined income. Lowering your combined income can help reduce your Social Security tax liability.
- Avoid claiming unnecessary income. Ensure you are not claiming any income you do not have to claim.
- Donate to charitable organizations. Consider donating to a foundation to reduce your taxable income.
- Leverage tax credits and deductions. In some cases, you may qualify for tax credits or deductions when you receive Social Security benefits. Check with your state revenue department to figure out if you are eligible for any exemptions based on your filing status and income.
- Supplement retirement income with tax-free withdrawals. Depending on the type of retirement savings you have, you may be able to make tax-free withdrawals. This can also help you supplement your income if you have to pay taxes on Social Security benefits.
- Talk to a tax professional. You can talk to a tax expert to learn more strategies to lower your taxable income.
Social Security income and taxes: FAQs
At what age is Social Security income no longer taxed?
Social Security income can be taxed at any age depending on your income. You may have heard your Social Security benefits are no longer taxed at age 70, but your benefits may be taxed at the state and federal level if you exceed certain income thresholds.
Do I have to file a tax return if I only receive Social Security benefits?
If you only receive Social Security benefits but still owe taxes on those benefits, you must file a tax return. You may not have to file a tax return if you only receive a small amount in Social Security benefits, but you should double-check with a tax expert.
Which types of Social Security benefits are not taxable?
Supplemental Social Security Income benefits are not taxable. This means you do not have to worry about Social Security income taxes if you receive SSI benefits.
The Bottom Line
Even if you are not working, you may owe taxes if you receive Social Security benefits. You may not owe taxes if your combined income is below a certain threshold, and certain states may tax your benefits at the state level. Talk to a tax expert to learn more about how Social Security income is taxed in your state.
Your specific tax situation will determine whether or not your benefits will be taxed. By understanding income thresholds and filing statuses, you can be ready ahead of time. And if you need help preparing and filing your taxes, our tax experts are here for you! Learn more about Sun Loan’s tax preparation services here.
