Do You Need to Pay Taxes on Social Security? Maybe. Here’s How to Figure It Out

Retirees, Listen Up! You Might Still Owe Taxes on Social Security—Here’s What You Need to Know

Retirement is supposed to be a time of relaxation, financial freedom, and maybe even a little travel. But if you think that means you’re off the hook for filing taxes, think again. Millions of retirees are still required to pay federal taxes on their Social Security benefits, and some might even be eligible for a tax refund they’re missing out on.

In December 2024, the Social Security Administration (SSA) distributed over $135 billion in benefits to more than 74 million people. Since 1984, retirees with income above certain thresholds have been required to pay taxes on their Social Security benefits. Factors like age, marital status, and additional income all play a role in determining whether you need to file.

Do You Need to File Taxes on Social Security?

To figure out if your benefits are taxable, you’ll need to calculate your combined income. This includes 50% of your Social Security benefits plus any other income you earned in 2025. If this total exceeds the base amount for your filing status, you may owe taxes.

Here’s how the IRS breaks it down:

• Single, Head of Household, or Qualifying Widow(er): Base amount is $25,000.
• Married Filing Jointly: Base amount is $32,000.
• Married Filing Separately (living apart): Base amount is $25,000.
• Married Filing Separately (living together): Base amount is $0.

If your combined income falls between $25,000 and $34,000 (single) or $32,000 and $44,000 (married filing jointly), you may owe taxes on up to 50% of your benefits. If it exceeds $34,000 (single) or $44,000 (married filing jointly), you could owe taxes on up to 85% of your benefits.

Should You File Even If It’s Not Required?

Even if you’re not required to file, it might be worth it. If you had federal taxes withheld or made estimated tax payments, you could be entitled to a refund. Plus, you might qualify for tax credits like the Earned Income Tax Credit or the Child Tax Credit, which could put even more money back in your pocket.

How to Find Your Social Security Benefit Amount

The SSA will send you a Form SSA-1099 by the end of January, detailing all the benefits you received in the previous year. If you don’t receive it, you can access it through your online My Social Security account.

The Bottom Line

Retirement doesn’t always mean tax-free living. If you’re a Social Security recipient, it’s crucial to understand your tax obligations and potential benefits. Filing a return could save you money or even land you a refund. Don’t leave cash on the table—check your status and file if necessary.

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