Who pays no tax on Social Security

Whether you owe tax on Social Security depends on your combined income — not just what Social Security sends you. If your combined income stays below a certain threshold, you owe nothing. Combined income means your adjusted gross income plus nontaxable interest plus half your Social Security benefits.

For a single filer in 2024, if combined income is $25,000 or less, you owe no tax on Social Security. For married filing jointly, the threshold is $32,000. If you are married filing separately, the threshold is $0 — meaning almost any combined income triggers tax. These thresholds do not change year to year, so they have stayed the same since 1984.

The IRS does not send you a bill automatically. You find out whether you owe by filing a tax return or by using a worksheet. Many people with only Social Security income do not file at all and owe nothing — but some do owe and do not know it.

Key Takeaways

  • Combined income (not Social Security alone) determines whether you owe tax, and the threshold is $25,000 for single filers and $32,000 for married filing jointly.
  • Combined income includes your adjusted gross income, nontaxable interest, and half your Social Security benefits — so even people with no job may owe tax.
  • You calculate combined income using IRS Worksheet 1 in Publication 915, which is free and available on irs.gov.
  • If you owe tax, you can pay it when you file or arrange withholding from your Social Security check itself.
  • State tax rules differ from federal rules, and some states tax Social Security while others do not, regardless of what you owe the IRS.

How combined income is calculated

Combined income is the number that matters, and it is not the same as your Social Security benefit. Start with your adjusted gross income — wages, pensions, taxable interest, capital gains, and other income sources. Then add nontaxable interest (usually from municipal bonds) and half your Social Security benefits.

If you are retired and have no job but receive a pension and Social Security, your combined income includes the pension plus half the Social Security. If you have a part-time job, wages count too. If you sold an investment at a loss, that loss reduces your adjusted gross income, which lowers combined income.

The IRS provides Worksheet 1 in Publication 915 to walk through this calculation. You can read Publication 915 free from irs.gov or request a paper copy by phone at 1-800-829-3676. The worksheet takes about five minutes and shows you exactly where you stand.

The income thresholds and tax brackets

The thresholds have not moved since 1984. For single filers, $25,000 is the line. For married filing jointly, it is $32,000. For married filing separately, it is $0. These numbers explore whether you filed taxes last year or not.

If your combined income is below the threshold, you owe no federal tax on Social Security. If it is above the threshold, up to 85 percent of your Social Security can become taxable, depending on how far above the threshold you are. The IRS uses a two-tier system: the first tier taxes up to 50 percent of benefits, and the second tier taxes up to an additional 35 percent.

Because the thresholds have not changed in 40 years, more people cross them each year as wages and pensions rise. Someone who owed no tax in 2020 may owe tax in 2024 even if their Social Security benefit stayed the same.

Who usually owes tax on Social Security

People with pensions, part-time work, or investment income are most likely to owe. A retired teacher with a $30,000 pension and $20,000 in Social Security has combined income of roughly $40,000 (the pension plus half the benefit), which is above the $25,000 threshold for single filers. That person owes tax on some of the Social Security.

Someone with only Social Security and no other income owes nothing, no matter how large the benefit. Someone with Social Security and a small amount of nontaxable interest (like a municipal bond) may still owe nothing if the total stays below the threshold.

Divorced people who claim on an ex-spouse's record follow the same rules. Survivors who receive benefits on a deceased worker's record also follow the same rules. The source of the benefit does not matter — only the combined income does.

How to handle the tax if you owe it

If you owe tax on Social Security, you have two options: pay when you file your return, or arrange withholding from your benefit check itself. Withholding is simpler if you want to avoid a large bill in April.

To set up withholding, fill out Form W-4V and send it to your local Social Security office or mail it to the address on the form. You can choose to withhold 7, 10, 12, or 22 percent of your benefit. The Social Security Administration will then hold that amount each month and send it to the IRS. You can change the withholding amount or stop it at any time by submitting a new Form W-4V.

If you do not set up withholding and owe tax, you file Form 1040 or 1040-SR (for people 65 and older) and pay the amount due. You can also make estimated tax payments throughout the year using Form 1040-ES if you prefer not to withhold.

State tax rules are different from federal rules

Thirteen states tax Social Security income: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. The rules in each state differ from the federal rules and from each other.

Some states use the same combined income threshold as the federal government. Others have lower thresholds or no threshold at all. Some states exempt Social Security entirely for people over a certain age. A few states tax only the portion that is taxable at the federal level.

If you live in one of these thirteen states, you may owe state tax even if you owe no federal tax. You may also owe state tax on a smaller portion of your benefit than the federal government taxes. Check your state's tax agency website or call their helpline to learn the rules for your state.

What to do if you are unsure whether you owe

read Publication 915 from irs.gov and use Worksheet 1 to calculate your combined income. If it is below the threshold for your filing status, you owe no federal tax on Social Security. If it is above the threshold, the worksheet walks you through calculating how much is taxable.

If you have income from multiple sources or a complex situation, you can call the IRS at 1-800-829-1040 and speak to a representative. They can walk through your numbers and tell you whether you owe. You can also visit an IRS Volunteer Income Tax information site, which offers free tax help to people with low to moderate income. Find a site near you at irs.gov.

If you already filed a return and believe you made a mistake, you can file an amended return using Form 1040-X. The IRS has no time limit on refunds you are owed, but you must file within three years to claim a refund.

Frequently Asked Questions

Can I avoid owing tax by not filing a return?

If you owe tax, not filing does not erase the debt — the IRS can pursue it. However, if your combined income is below the threshold, you owe nothing and do not have to file. The IRS does not automatically know your income, so you must calculate it yourself using Worksheet 1 in Publication 915 to be sure.

Does my spouse's income count toward the threshold if we file separately?

No. If you file separately, only your own income counts. However, the threshold for married filing separately is $0, meaning almost any combined income triggers tax. Most married couples owe less tax by filing jointly because the threshold is higher.

What if I have nontaxable income like a Roth IRA withdrawal?

Roth IRA withdrawals do not count toward combined income if you have owned the account for at least five years and meet other conditions. However, conversions from a traditional IRA to a Roth do count. Check Publication 915 or call the IRS to confirm whether a specific income source counts.

If I withhold tax from my Social Security, will I get a refund?

You may. If you withhold more than you actually owe, you will receive a refund when you file your return. If you withhold less than you owe, you will owe the difference. Adjust your withholding on Form W-4V if you want to change the amount.

Do I have to report Social Security income if I did not receive a 1099-SSA form?

Yes. The Social Security Administration sends a 1099-SSA to everyone who receives benefits, but if you did not receive one, you still must report the income. You can find the amount on your Social Security statement or by logging into your account at ssa.gov.