If you receive retirement, disability, or survivor benefits from the Social Security Administration (SSA), you may be wondering whether those payments are taxed.
It all depends on how much other income you have and what your filing status is.
This article explains when taxes apply to SSA benefits, how the federal rules work, and what you should check.
What types of Social Security benefits might be taxable?
The types of benefits from SSA that could be taxable include monthly retirement benefits, survivor benefits, and disability benefits coming through the Social Security trust funds.
On the other hand, benefits from Supplemental Security Income (SSI) are not taxable.
It is important to know which benefit you receive so you know whether tax rules might apply to you.
How do I know if my Social Security benefits are taxed at the federal level?
The federal government uses a formula based on what it calls your “combined income” to decide whether any portion of your Social Security benefits will be taxable.
Combined income equals your adjusted gross income (AGI) plus nontaxable interest plus one-half of your Social Security benefits.
After computing that, you compare it to base amounts determined by your filing status, which tell you whether 0 %, up to 50 % or up to 85 % of your benefits may be taxable.
What are the income thresholds for taxation of Social Security benefits?
Here are the key federal thresholds (for the tax year 2025 and beyond) you need to know:
- If you are single, head of household, or a qualifying widow/widower, and your combined income is $25,000 or less, your Social Security benefits are not taxable.
- If you are single and your combined income is between $25,000 and $34,000, up to 50 % of your benefits may be taxable. If your income is above $34,000, up to 85 % may be taxable.
- If you are married filing jointly, and you and your spouse have a combined income of $32,000 or less, then generally 0 % of your Social Security benefits will be taxable. If your combined income is between $32,000 and $44,000, up to 50 % may be taxable. If above $44,000, up to 85 % may be taxable.
Note that these thresholds apply to federal income tax, not necessarily to state taxes. Some states tax SSA benefits differently or not at all.
Do all states tax Social Security benefits?
No. Many states do not tax Social Security benefits, but a handful still do or tax them under certain conditions.
For example, according to reliable sources, most states exempt SSA benefits, but states like Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont may tax them in some cases.
If you live in a specific state, you should check the state tax rules for SSA benefits.
Even if your federal tax liability is zero, your state may treat your benefits differently.
Does the amount I receive from Social Security affect taxability?
The actual benefit amount does matter because it enters into the combined income calculation.
But having higher benefits alone does not guarantee you’ll owe taxes on them.
The important factor is how your total income (including other income) stacks up relative to the thresholds.
Also earnings from wages, pensions, interest, dividends, and other sources can push you into the taxable zone even if your benefit amount is modest.
What steps should I take if I think part of my benefits may be taxable?
Here is what you should do:
- First, access your Form SSA-1099 (Social Security Benefit Statement). This shows your total benefits for the year.
- Second, determine your other income: wages, pension, interest, dividends, taxable IRA distributions, etc.
- Third, compute your combined income: AGI + nontaxable interest + half of your SSA benefits.
- Fourth, compare to the IRS base amounts (e.g., $25,000 for single, $32,000 for married jointly).
- If you find that your combined income is below the threshold, you likely owe no federal tax on SSA benefits. If above, use Worksheet in Form 1040 instructions or IRS Publication 915 to calculate exactly how much of your benefits is taxable.
- Finally, consider having federal taxes withheld from your SSA benefits—SSA offers a form (Form W-4V) to request voluntary withholding if you think you will owe taxes.
What misconceptions should I avoid about Social Security and taxes?
One common misconception is that once you reach a certain age, your SSA benefits become completely tax-free. That is not correct.
Age itself does not guarantee non-taxable benefits. It is your income and filing status that determine taxability.
Also, receiving only SSA benefits does not always mean you owe taxes, but a small amount of other income could trigger tax liability.
Planning your income sources carefully can make a difference.
