Social Security Benefits and Taxes

Q: How to calculate taxable Social Security?

Add half of your Social Security income to all of your other income, including non-taxable interest and other excluded income. This income will be taxed at up to 50% if within the range below, or up to 85% if it is more than the upper end of the threshold.Compare this total to the base amount for your filing status:Single - $25,000 - $34,000Married filing jointly - $32,000 - $44,000Head of household - $25,000 - $34,000Qualifying widow(er) with dependent child - $25,000 - $34,000Married filing separately - $25,000 - $34,000 (if the spouses did NOT live together at all during the year). If the spouses lived together during the year, the amount is $0.For nonresident aliens, 85% of benefits are to be taxed at a rate of 30%.If your total income is more than the base amount, you might owe some tax on your Social Security benefits. You can use the worksheet in the Form 1040 instructions or use the easiest method which is to prepare your return on eFile.com to find out exactly how much of your Social Security income is taxable.

Q: What are some examples of Social Security income and taxability?

Example 1: Randy will be filing with a single filing status on his return. His income includes a taxable pension of $18,600, W-2 wages of $9,400, and taxable interest of $990 for a total of $28,990. In addition, he has social security benefits of $5,980. In this case, his taxable social security benefits would be $2,990, so only about 50% of his social security income is taxable.Example 2: John and Denise will be filing a joint return; John is retired, his income includes a taxable pension of $15,500, and he received $5,600 in social security benefits. Denise had W-2 income of $14,000 and made a deductible payment to her IRA for $1,000. They both have about $250 in taxable interest income for a total of $34,350, minus half of the Social Security income to reach $31,550. In their case, none of John's social security income is taxable.Example 3: Sue and Joe will be filing with the married filing joint filing status on their return. Joe is retired and received Social Security benefits for $10,000. Sue is also retired and her income is from a taxable pension for $38,000. They both have $2,300 in taxable interest income and $200 from a savings bond. In this case, their taxable social security benefits would be about $6,275 or 63% of Joe's social security income.

One of the first questions most Social Security benefit recipients want to know is if their Social Security income is taxable income. If you are still working when you receive Social Security benefits and you have income from other sources, it is possible that a portion of your Social Security income will be taxable. In general, if your only income is Social Security, Supplemental Security, disability income, or other similar income, then you do not pay taxes on this income and do not need to file a return.

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Do you have no other income but which to file a tax return for different reasons? Learn more about no income tax returns or SSI only tax returns.

KEY TAKEAWAYS

If Social Security is your only income source, it's usually not taxable. However, if you also have income from other sources, your Social Security benefits may become partially taxable, depending on your combined income and filing status.
Social Security benefits may be taxed based on specific income thresholds. For single filers, taxation starts if combined income exceeds $25,000, and for married filing jointly, it starts above $32,000.
It's essential to keep records of all sources of income, including pensions, wages, interest, and dividends, as these can impact whether your Social Security benefits are taxable and how much tax you might owe.
When you receive Social Security benefits, you will be sent Form SSA-1099, which details the total benefits received for the year. This form is necessary for preparing your tax return and determining any taxable amount.
If you have multiple employers in a year, you might have overpaid Social Security taxes. You can claim a refund of the excess amount when you file your tax return, ensuring you don't pay more than required.

How Is Social Security Taxed?

If your Social Security benefits are your only source of income, then they are usually not considered taxable income and thus not taxed by the IRS. You will be sent Form SSA-1099 which will show the total dollar amount of your Social Security income for the given tax year. If you are retired, you may also get a 1099-R for other retirement income - learn how to add 1099-R details to your return or see SSA-1099 instructions.

Whether or not your Social Security income is taxable - and how much is taxable - depends on your total income from all sources and your IRS tax return filing status.

Social Security.
Income

Social security benefits are generally not taxable, unless:

A: You are filing separate return from your spouse and you lived with the spouse at any time during the 2023 tax year.

B: one-half of your social security income plus your other gross income and any tax-exempt interest is more than $25,000 for singles, married filing separate, head of household and $32,000 and above if married filing jointly. This is also called, combined income.

Combined Income = adjusted gross income or AGI plus non-taxable interest plus 1/2 of Social Security income or benefits. Determine your current tax year AGI by either using the current tax year free calculator or by starting a free tax return.

Start a free return via the eFile tax app before you eFileIT to determine the taxable portion of social security income or benefits. Your income may be taxed on 50% of your benefits or up to 85%, calculated by the eFile website.

Frequently Asked Questions

How to calculate taxable Social Security?

Add half of your Social Security income to all of your other income, including non-taxable interest and other excluded income. This income will be taxed at up to 50% if within the range below, or up to 85% if it is more than the upper end of the threshold.
Compare this total to the base amount for your filing status:
- Single - $25,000 - $34,000
- Married filing jointly - $32,000 - $44,000
- Head of household - $25,000 - $34,000
- Qualifying widow(er) with dependent child - $25,000 - $34,000
- Married filing separately - $25,000 - $34,000 (if the spouses did NOT live together at all during the year). If the spouses lived together during the year, the amount is $0.
- For nonresident aliens, 85% of benefits are to be taxed at a rate of 30%.
If your total income is more than the base amount, you might owe some tax on your Social Security benefits. You can use the worksheet in the Form 1040 instructions or use the easiest method which is to prepare your return on eFile.com to find out exactly how much of your Social Security income is taxable.

What are some examples of Social Security income and taxability?

Example 1: Randy will be filing with a single filing status on his return. His income includes a taxable pension of $18,600, W-2 wages of $9,400, and taxable interest of $990 for a total of $28,990. In addition, he has social security benefits of $5,980. In this case, his taxable social security benefits would be $2,990, so only about 50% of his social security income is taxable.

Example 2: John and Denise will be filing a joint return; John is retired, his income includes a taxable pension of $15,500, and he received $5,600 in social security benefits. Denise had W-2 income of $14,000 and made a deductible payment to her IRA for $1,000. They both have about $250 in taxable interest income for a total of $34,350, minus half of the Social Security income to reach $31,550. In their case, none of John's social security income is taxable.

Example 3: Sue and Joe will be filing with the married filing joint filing status on their return. Joe is retired and received Social Security benefits for $10,000. Sue is also retired and her income is from a taxable pension for $38,000. They both have $2,300 in taxable interest income and $200 from a savings bond. In this case, their taxable social security benefits would be about $6,275 or 63% of Joe's social security income.

What if my return has many types of income?

Your Social Security income will only be taxed if your combined income exceeds a certain amount.
This amount, called the base amount, varies by filing status.
The maximum taxable portion is 85%, which can be calculated using eFile.com.

How do Social Security taxes work?

FICA (Federal Insurance Contributions Act) tax includes Social Security and Medicare taxes, funding these programs. Employees have these taxes withheld, while self-employed individuals pay self-employment taxes. FICA Taxes are 6.2% towards Social Security and 1.45% towards Medicare.

What is Excess Social Security Tax?

If your income exceeded $168,600, you may have overpaid Social Security taxes. This excess can be refunded or credited against your tax balance when you file your return.

How to pay unreported Social Security and Medicare taxes?

If your employer under withheld Social Security and Medicare taxes, you may need to pay them when filing your return. You might need to file Form 8919 - eFile will help you complete this form.

How to e-File Social Security Income on Your Tax Return?

If you prepare your return on eFile.com and have taxable income, we will calculate the correct amount of tax on your Social Security benefits and prepare the necessary forms for you.

Can I still get Social Security if I retire out of the country?

You can generally receive Social Security income if you retire in a foreign country. See if your country qualifies here:
Social Security Administration Payments Abroad Screening Tool

How Much of Social Security Can Be Taxed?

Generally, your Social Security income will only be taxed if you have income from other sources and your combined income is more than a certain base amount. If Social Security is your only source of income, then you typically do not need to file a tax return. Of course, there may be other reasons that you need to file a return.

The amount of your benefits that can be taxed is dependent on your filing status - the table below summarizes how much of your benefits may be taxed when combined with your other income.

Filing Status

Taxable Amount of Social Security Benefits

Single, Head of Household, or Surviving Spouse

Less than $25,000: 0%
$25,000–$34,000: Up to 50%
Greater than $34,000: Up to 85%

Married Filing Jointly

Less than $32,000: 0%
$32,000–$44,000: Up to 50%
Greater than $44,000: Up to 85%

Married Filing Separately

Up to 85% of Social Security income may be taxed if you lived with your spouse at any time during the tax year. If you lived apart for the entire year, use the amounts for single, head of household, or surviving spouse.

Social Security income includes elderly or disabled benefits, monthly retirement benefits, and survivor benefits. Social Security income does not include pension and annuity income, wages, interest, ordinary dividends, or capital gain distributions.

The above would be considered other sources of income and, if you have any of these, then you will likely need to file a tax return along with your Social Security benefits. Social Security income also does not include Supplemental Security Income (SSI) or disability payments; those payments are not taxable.

Which States Tax Social Security Income?

Does your state tax Social Security income? What about other retirement income? Military retirement income? Which state is the best to retire in? Use the state map below to learn about each state and how they handle taxes on certain retirement income.

Interactive State Map

Click on one or more of the states in the map below to visit a specific state page. Links to these pages are also found in the table below.

No State Income Taxes

State does not tax Social Security Benefits

State taxes Social Security Benefits, but offers exemptions for certain ages and incomes

State taxes Social Security Benefits with modifications

Most states do not tax Social Security income, but there are 13 states that do:

Colorado
Connecticut
Kansas
Minnesota
Missouri
Montana
Nebraska
New Mexico
North Dakota
Rhode Island
Utah
Vermont
West Virginia.

How these states tax Social Security depends on your adjusted gross income (AGI) and other criteria. Check your state's tax information for more details.

Learn more about Social Security and your taxes in IRS Publication 915 - Social Security and Equivalent Railroad Retirement Benefits.

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