Some people might have to pay federal income taxes on their Social Security benefits. It depends on your total income. This usually happens if you have a lot more extra income, from sources such as wages, self-employment, interest, dividends, or other taxable income.
The Internal Revenue Service (IRS) rule is that only 85 percent of Social Security benefits can be taxed. The percentage of benefits that can be taxed depends on the your filing status and combined income.
- For single individuals, if the combined income falls between $25,000 and $34,000, up to 50 percent of the benefits may be taxable. If the combined income goes over $34,000, up to 85 percent of the benefits may be taxable.
- For married couples filing jointly, the income thresholds are $32,000 to $44,000.
- For married individuals filing separately, they will likely have to pay taxes on their benefits. The combined income is calculated by adding the adjusted gross income, nontaxable interest, and half of the Social Security benefits.
Each January, you should receive a Social Security Benefit Statement (Form SSA-1099) that shows the previous year's benefit amount. You can use this statement when filing your federal income tax return to see if your benefits are taxable. In case you lose or don't receive the form, you can find a copy through your online Social Security account.
If you owe taxes on your Social Security benefits, you have two options:
- You can make quarterly estimated tax payments to the IRS, OR
- You can choose to have federal taxes withheld directly from your benefits.
Last Reviewed: July 6, 2023