Whether you pay tax on Social Security depends on your other income

You may owe federal income tax on your Social Security benefits in 2025, but only if your total income exceeds certain thresholds. The IRS uses a formula called combined income to decide this — it adds your adjusted gross income, nontaxable interest, and half your Social Security benefits. If that sum goes over the limit for your filing status, a portion of your benefits becomes taxable.

The income thresholds have not changed since 1984, which means more people cross them each year as wages and benefits rise. For 2025, the first threshold is $25,000 for single filers and $32,000 for married couples filing jointly. A second threshold at $34,000 (single) and $44,000 (married) determines how much of your benefits can be taxed.

State and local taxes are separate. Some states do not tax Social Security at all, while others tax it the same way the federal government does. Check your state's tax rules — they vary widely.

Key Takeaways

  • You owe federal tax on Social Security only if your combined income (wages, pensions, interest, plus half your benefits) exceeds $25,000 (single) or $32,000 (married filing jointly).
  • Up to 85 percent of your benefits can be taxed, depending on how far your income exceeds the second threshold.
  • The IRS uses Form SSA-1099 to report your benefits; you report them on Form 1040 using the Social Security Worksheet.
  • State tax treatment of Social Security varies — some states tax it, others do not, and a few tax it differently than the federal government.
  • If you work while receiving benefits before full retirement age, your benefits may be reduced, which also affects your tax calculation.

How the IRS calculates taxable Social Security benefits

The calculation has two steps. First, add your adjusted gross income (wages, self-employment income, taxable pensions, taxable interest, capital gains, and other sources) to half your Social Security benefits. If you also have nontaxable interest (such as from municipal bonds), add that too. This total is your combined income.

Next, compare your combined income to the thresholds. If it is $25,000 or less (single) or $32,000 or less (married filing jointly), you owe no federal tax on your benefits. If it exceeds the first threshold but not the second, up to 50 percent of your benefits may be taxable. If it exceeds the second threshold ($34,000 single, $44,000 married), up to 85 percent of your benefits may be taxable.

The actual amount taxed is the lesser of two calculations: either 50 percent of the amount over the first threshold, or 85 percent of the amount over the second threshold, plus any excess from the first calculation. This formula prevents the IRS from taxing more than 85 percent of your benefits in any year.

Income sources that count toward the threshold

Earned income (wages and self-employment) counts in full. Taxable pensions, annuities, and distributions from retirement accounts (401(k), IRA, SEP-IRA) count. Taxable interest, capital gains, and rental income all count. Dividend income counts. Distributions from a Roth IRA do not count toward combined income, but the earnings portion of a Roth conversion does.

Nontaxable interest — such as interest from Series EE savings bonds used for education or interest from municipal bonds — does count for the Social Security threshold calculation, even though it is not taxable income. This surprises many people and can push them over the threshold even if their taxable income is low.

Some income does not count: Supplemental Security Income (SSI), Medicaid, food stamps, housing information, and other means-tested benefits are excluded. Railroad Retirement benefits are taxed under their own rules, not the Social Security rules.

How to report Social Security on your tax return

The Social Security Administration sends you Form SSA-1099 by January 31 each year, showing the total benefits you received in the prior year. You use this form to fill out the Social Security Worksheet in the instructions for Form 1040 (the main federal income tax form). The worksheet walks you through the combined income calculation and tells you how much of your benefits, if any, is taxable.

You then enter the taxable portion on line 5b of Form 1040. If you file electronically, tax software usually includes the worksheet and calculates this automatically once you enter the amount from your SSA-1099.

If you receive benefits for only part of the year — for example, you turned 62 and started benefits in June — your SSA-1099 will show only the months you received payments. The same thresholds explore; you do not get a reduced threshold for a partial year.

State tax treatment of Social Security benefits

Thirteen states tax Social Security benefits: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. Most of these states follow the federal formula, taxing the same portion the IRS taxes. A few have their own rules.

Thirty-seven states and the District of Columbia do not tax Social Security benefits at all, regardless of your income. If you live in one of these states, you owe no state income tax on your benefits even if you owe federal tax.

If you moved to a new state during the year, you may owe tax to both your old state and your new state, depending on their rules and when you moved. Check the tax agency website for the state where you lived on December 31 to determine your filing requirement.

What happens if you work while receiving Social Security

If you have not yet reached full retirement age and you earn wages, the Social Security Administration reduces your benefits by $1 for every $2 you earn above the annual limit. For 2025, that limit is $23,400. In the year you reach full retirement age, the reduction is $1 for every $3 earned above $62,400, but only for earnings before the month you reach full retirement age. Once you reach full retirement age, your benefits are not reduced no matter how much you earn.

The benefit reduction affects your tax calculation because you receive less in Social Security payments. Your combined income may be lower, which could mean less of your benefits are taxable or none at all. However, the wages you earn from work still count toward combined income, so the tax benefit may be small.

Withholding and estimated tax payments

You can ask the Social Security Administration to withhold federal income tax from your benefits. You do this by completing Form W-4V and sending it to your local Social Security office or mailing it to the address on the form. You can choose to withhold 7, 10, 12, or 22 percent of your monthly benefit.

If you do not have enough tax withheld during the year, you may owe when you file your return. If you owe more than $1,000, the IRS may charge you a penalty for underpayment of estimated tax. To avoid this, you can make quarterly estimated tax payments using Form 1040-ES, or you can increase your withholding if you have other income sources.

Many people who receive Social Security also receive a pension or have other income. In those cases, you can adjust the withholding on your pension or wages instead of (or in addition to) withholding from Social Security.

Frequently Asked Questions

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

Not necessarily. If Social Security is your only income and it is below the standard deduction for your filing status ($15,000 for single filers in 2025), you do not have to file. However, if you have other income or if you want to claim a refundable tax credit, you should file even if you are not required to.

What if I receive both Social Security and a pension?

Both count toward your combined income. Add your pension (or the taxable portion of it) plus half your Social Security benefits to see if you cross the threshold. Many people with pensions find that their combined income pushes them into the range where Social Security becomes taxable.

Can I reduce my taxable Social Security by taking less in benefits?

You cannot choose to receive a lower benefit amount to avoid taxes. However, you can delay claiming benefits past age 62, which increases your monthly payment and may allow you to manage your combined income differently in the years before you claim. This is a long-term decision and depends on your health and other circumstances.

Are my spouse's benefits included in my combined income calculation?

No. Each person calculates their own combined income and taxable benefits separately. If you are married filing jointly, you add both spouses' combined incomes together to see if you meet the joint threshold, but each person's benefits are taxed based on their own income.

What if I made a mistake on last year's return and did not report Social Security correctly?

You can file an amended return using Form 1040-X for any year within three years of the original due date. If you owe additional tax, you will also owe interest and possibly penalties. Contact the IRS or a tax professional to discuss your situation.