Taxation of Social Security Benefits | IRS Rules, Income Tax, Calculation, Age, & Refunds
Earning income in retirement? You might owe taxes on your Social Security.
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You’ve retired—finally! Your Social Security checks have started arriving, but did you know that taxes might still be in the picture? If you take on a “retirement side hustle” or start drawing money from your 401(k) or other tax-deferred retirement plan, it could affect your tax bill.
Let’s dive into when and why Social Security benefits are taxed and how much you might owe.
NOTE: This article is based on the 2024 tax year. The One Big Beautiful Bill Act, signed into law in July 2025, includes an additional $6,000 standard deduction for taxpayers over age 65, effective for the 2025–2028 tax years.
Key Points
- Social security benefits are partially taxable, depending on your filing status and your other income.
- Some states tax Social Security benefits.
- For the 2025-2028 tax years, taxpayers over 65 can claim an additional $6,000 standard deduction.
What are my Social Security benefits?
Social Security benefits include:
Note that Supplemental Security Income (SSI) payments are not taxable.
A new (but temporary) tax deduction for seniors
Thanks to a provision in the One Big Beautiful Bill Act of 2025, taxpayers with a modified adjusted gross income (MAGI) of $75,000 for single filers and $150,000 for those married and filing jointly can claim an additional $6,000 tax deduction. The law doesn’t change how Social Security benefits are taxed—and it’s only effective between the 2025 and 2028 tax years—but the temporary deduction may lower or eliminate tax on those benefits for some middle- and lower-income seniors.
You will receive a form from the Social Security Administration called the SSA-1099 that shows your total Social Security benefits received during each tax year.
Do you want to start planning for your retirement? Look no further. Check out the retirement savings calculator below, plug in the appropriate numbers, and see how long your savings might last. Are you on track?
Social Security taxable portion calculator
In order to calculate the portion of your Social Security that is taxable, first take 50% of the amount in box 5 from Form SSA-1099 (your Social Security received). Add it to your income (i.e., money you received from your pension or traditional IRA, any wages you earned at a full or part-time job, interest, dividends, and capital gains). You also need to add in any tax-exempt interest.
Note that distributions from a Roth IRA or Roth 401(k) are not taxable and do not affect your taxable Social Security calculation.
What number did you get? Is it higher than $25,000 (single filer) or $32,000 (married filing jointly)? If so, you might be required to pay taxes on some of your Social Security income.
- If you’re married filing jointly, add the total income from you and your spouse, plus half of both of your Social Security benefits when you calculate your income level (see below).
- If you and your spouse file separately but you lived together at any time during the tax year, 85% of your Social Security benefits are taxed, no matter what your income level.
| Filing status | Calculated income level (2024 tax year) | Percent of Social Security that is taxed |
|---|---|---|
| Single, head of household, surviving spouse or married filing separately (living apart) | Under $25,000 | Zero |
| Single, head of household, surviving spouse or married filing separately (living apart) | $25,001 to $34,000 | Up to 50% |
| Single, head of household, surviving spouse or married filing separately (living apart) | Over $34,000 | Up to 85% |
| Married filing jointly (income added) | Under $32,000 | Zero |
| Married filing jointly (income added) | $32,001 to $44,000 | Up to 50% |
| Married filing jointly (income added) | Over $44,000 | Up to 85% |
| Married filing separately (living together) | Any income | Up to 85% |
Let’s look at an example. In the 2024 tax year, Joe received $18,000 in Social Security payments, according to his SSA-1099. He also earned $20,000 from his part-time job and earned $1,000 in investment income. To calculate what’s taxable, Joe should add half of his Social Security ($9,000) to his other income ($21,000), which totals $30,000. According to the table above, half (50%) of Joe’s Social Security income would be taxable.
And remember: The 50% and 85% thresholds are the amount of Social Security income subject to tax. That’s different from your tax rate, which is derived from the IRS tax tables. In our example, suppose Joe’s effective federal tax rate for 2024 is 10%. His $18,000 in Social Security income would result in a tax payment of 10% on the $9,000 subject to tax, or $900.
Will my state tax my Social Security?
As of the 2025 tax year, nine states tax Social Security benefits. If you live in one of these states, make sure you follow the rules: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia (although the state plans to phase the tax out by 2026).
Survivor benefits for children
If a child receives survivor benefits, the same calculation applies. The child’s income is added to half of the benefits received and the table above is used to calculate the taxable portion. In most cases, a child is single, and a child’s income would be less than $25,000, which results in no taxable portion of benefits.
The bottom line
If you want to avoid being taxed on up to 85% of your Social Security benefits, watch your other income each year. Perhaps you could work fewer hours at your part-time job or, if you’re self-employed, you might delay sending an invoice from a consulting gig until the next year, when you might not have as much income.
You might also consider delaying your Social Security benefits if you’re still working past your retirement age. That will not only prevent Uncle Sam from taxing that income, but also add to your monthly benefit once you do begin taking Social Security.
And if you haven’t retired yet, consider putting more of your income into a Roth IRA or Roth 401(k), as those withdrawals in retirement do not affect taxes on your Social Security.
Finally, as you consider your dream retirement location, you might want to consider moving to a state that doesn’t tax Social Security benefits, depending on your overall goals.
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