Most people do not pay federal income tax on their Social Security benefits, but some do

Whether you owe federal income tax on your Social Security depends on your total income for the year. The IRS uses a formula based on what they call combined income — your adjusted gross income plus nontaxable interest plus half of your Social Security benefits. If that number stays below a certain threshold, you pay no tax on your benefits. If it goes above that threshold, you may owe tax on part of your benefits.

The thresholds are the same whether you are single or married filing jointly, and they have not changed since 1984. For 2024, if your combined income is under $25,000 (single) or $32,000 (married filing jointly), you owe no federal tax on your benefits. If you are married filing separately, the threshold is $0 — meaning almost any combined income will trigger tax.

State tax is different from federal tax. Some states do not tax Social Security at all. Others tax it the same way the federal government does, or tax it only if your income exceeds their own thresholds. You will need to check your state's rules separately.

Key Takeaways

  • You pay federal tax on Social Security only if your combined income (adjusted gross income plus half your benefits) exceeds $25,000 for single filers or $32,000 for married filers.
  • Combined income includes wages, pensions, investment income, and nontaxable interest — not just money you earned that year.
  • If you owe tax, you typically pay tax on 50 to 85 percent of your benefits, not the full amount.
  • State tax rules vary widely; some states do not tax Social Security at all, while others follow federal rules or have their own thresholds.
  • You can have taxes withheld from your Social Security check, or pay estimated tax quarterly, to avoid a large bill at tax time.

How the IRS calculates combined income

Combined income is not the same as your total income. The IRS starts with your adjusted gross income (AGI) — the number on line 11 of your 1040 tax form. Then they add back any nontaxable interest you earned, such as interest from municipal bonds. Then they add half of your Social Security benefits for the year.

This matters because you might have very little earned income but still cross the threshold. For example, if you have a pension of $20,000 and Social Security of $15,000, your combined income is $20,000 plus half of $15,000, which is $27,500. That puts you $2,500 over the single threshold, so part of your benefits becomes taxable.

Investment income counts too. If you sold stock at a gain, received dividends, or cashed in a bond, that goes into your AGI. Withdrawals from a traditional IRA or 401(k) count as income. Withdrawals from a Roth IRA do not count. Withdrawals from a health savings account (HSA) used for medical expenses do not count either.

How much of your benefits becomes taxable

If your combined income exceeds the threshold, the IRS does not tax all of your benefits. Instead, they tax either 50 percent or 85 percent of the amount over the threshold, depending on how far over you are.

The first tier is 50 percent. If your combined income is between the threshold and $9,000 more (for single filers) or $12,000 more (for married filers), you pay tax on up to 50 percent of your benefits. The second tier is 85 percent. If your combined income exceeds the first tier, you pay tax on up to 85 percent of your benefits.

The IRS worksheet for calculating this is complex, and most people use tax software or a tax preparer to work through it. The Social Security Administration publishes a simplified worksheet on their website that can give you a rough idea of whether you will owe tax, but it is not precise enough for filing.

Withholding taxes from your Social Security check

You can ask Social Security to withhold federal income tax from your monthly benefit. This works the same way withholding works from a paycheck — money is taken out each month, and you get a smaller check. At tax time, the withholding counts toward what you owe, just like it would from an employer.

To set up withholding, fill out Form W-4V (Voluntary Withholding Request) and send it to your local Social Security office or mail it to Social Security. You can choose to withhold 7, 10, 15, or 22 percent of your benefit. You can change your withholding amount or stop it at any time by submitting a new form.

Withholding is optional, but it can help you avoid owing a large amount at tax time. If you know you will owe tax, withholding spreads the payment across the year instead of asking you to pay it all in April.

State taxes on Social Security

Thirteen states tax Social Security benefits to some degree: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. The other 37 states do not tax Social Security at all.

Among the states that do tax it, the rules vary. Some follow the federal formula exactly. Others have their own thresholds, which may be lower or higher than the federal ones. A few states exempt benefits for people over a certain age or with income below a certain level. You need to check your state's tax department website or ask a tax preparer familiar with your state's rules.

If you live in one of the 13 states that tax Social Security, you may be able to withhold state tax from your benefit as well. This is separate from federal withholding and uses a different form — usually a state-specific W-4V or equivalent. Contact your state's tax department or Social Security to find out how.

What to do if you think you will owe tax

If you know your combined income will be high in a given year — because you sold a house, cashed in an investment, or started a pension — you have options. You can increase your federal withholding from your Social Security check using Form W-4V. You can also make estimated tax payments to the IRS quarterly if you prefer not to withhold.

If you did not withhold and did not make estimated payments, you will owe the tax when you file your return in April. The IRS does not charge a penalty for owing tax on Social Security as long as you pay what you owe by the important date. However, if you owe a large amount, you may be able to set up a payment plan with the IRS.

A tax preparer or accountant can help you figure out whether you will owe tax and how much to withhold or pay in advance. Many offer free or low-cost tax preparation for seniors with modest incomes through the IRS Volunteer Income Tax information (VITA) program.

Frequently Asked Questions

Do I have to file a tax return if I only have Social Security income?

Not necessarily. If Social Security is your only income and it is below a certain amount, you do not have to file. For 2024, that amount is $14,600 for single filers age 65 and older. However, if you have other income — wages, pensions, investment income — you may have to file even if your Social Security is small. Use the IRS interactive tool on their website to check whether you must file.

Can I reduce my taxes by delaying Social Security?

Delaying Social Security increases your monthly benefit but does not change how much of it is taxable. If your other income stays the same, delaying will not reduce your tax burden. However, if delaying allows you to avoid withdrawing from a traditional IRA or selling investments, it could lower your combined income and reduce your tax. This depends on your specific situation and is worth discussing with a tax preparer.

What if I made a mistake on my taxes and did not report Social Security correctly?

You can file an amended return using Form 1040-X. The IRS generally allows you to amend a return for up to three years back. If you owe additional tax, you will pay interest and possibly penalties, but correcting the error is better than leaving it. Contact a tax preparer or the IRS if you are not sure how to proceed.

Does my spouse's income count toward my combined income threshold?

Only if you file jointly. If you file jointly, you combine both spouses' incomes to calculate combined income. If you file separately, each spouse's combined income is calculated independently — but the threshold for married filing separately is $0, so almost any income will trigger tax on benefits.

Are there any ways to lower my combined income to avoid tax on Social Security?

A few strategies exist. Contributing to a traditional IRA reduces your AGI, though you must be under the income limits to deduct the contribution. Donating appreciated stock to charity instead of selling it avoids capital gains. Timing large withdrawals or sales across multiple years can keep any single year's income below the threshold. A tax preparer can discuss which strategies fit your situation.