Must I pay taxes on Social Security benefits? (2024)

FAQs

Must I pay taxes on Social Security benefits? ›

Between $25,000 and $34,000, you may have to pay income tax on up to 50% of your benefits. More than $34,000, up to 85% of your benefits may be taxable.

No more than 85% of Social Security benefits are ever taxable, regardless of the amount of your earned income.

You will pay federal income taxes on your benefits if your combined income (50% of your benefit amount plus any other earned income) exceeds $25,000/year filing individually or $32,000/year filing jointly. You can pay the IRS directly or have taxes withheld from your payment.

Yes, Social Security is taxed federally after the age of 70. If you get a Social Security check, it will always be part of your taxable income, regardless of your age. There is some variation at the state level, though, so make sure to check the laws for the state where you live.

Generally, if Social Security benefits were your only income, your benefits are not taxable and you probably do not need to file a federal income tax return.

You would not be required to file a tax return. But you might want to file a return, because even though you are not required to pay taxes on your Social Security, you may be able to get a refund of any money withheld from your paycheck for taxes.

At least half your Social Security benefits will be considered taxable income if that total exceeds the minimum taxable levels. You must then take the standard or itemize deductions to arrive at your net income.

There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.

Employers are required by law to withhold employment taxes from their employees. Employment taxes include federal income tax withholding and Social Security and Medicare Taxes.

Starting in 2024, tax Social Security benefits in a manner similar to private pension income. Phase out the lower-income thresholds during 2024-2043.

How much money can a senior make without paying taxes? ›

Taxes aren't determined by age, so you will never age out of paying taxes. Basically, if you're 65 or older, you have to file a return for tax year 2023 (which is due in 2024) if your gross income is $15,700 or higher. If you're married filing jointly and both 65 or older, that amount is $30,700.

Unless your combined income for 2024 is less than $25,000 (less than $32,000 for married couples filing jointly), a percentage of your Social Security payments will be subject to income tax.

If the only income you receive is your Social Security benefits, then you typically don't have to file a federal income tax return.

The net amount of Social Security benefits you receive is reported in Box 5 of your Social Security benefit statement (Form SSA-1099). According to the IRS, your benefits may be taxable if the total of your combined income is greater than the base amount for your filing status. Up to 85% of benefits can be taxed.

Combined income under $25,000 (single) or $32,000 (couple): Benefits are not taxed. Combined income of $25,000 to $34,000 (single) or $32,000 to $44,000 (couple): Up to 50 percent of benefits can be taxed. Combined income above $34,000 (single) or $44,000 (couple): Up to 85 percent of benefits can be taxed.

Key Takeaways. If you earn less than the standard deduction for your filing status, you likely don't need to file a tax return. Even if you don't meet the filing threshold, you may still have to file taxes if you have other types of income.

The third page of your Social Security Statement includes your earnings record. This shows you each year you've worked, your taxed Social Security earnings for each year and your taxed Medicare earnings for each year.

For the 2022 tax year, seniors filing single or married filing separately get a standard deduction of $14,700. For those who are married and filing jointly, the standard deduction for 65 and older is $25,900.