Is Social Security Still Taxable?

09/01/2025|Savvy Senior|,

About 40 percent of Social Security recipients have total incomes high enough to trigger federal income tax on their benefits.

Dear Savvy Senior,

Do I have to pay taxes on my Social Security retirement benefits? I heard that President Trump’s big, beautiful bill eliminated that. What can you tell me?

–About to Retire

Dear About,

No, the new law, better known as the ‘One Big Beautiful Bill Act’ did not eliminate Social Security taxes. It did, however, provide a temporary “senior bonus” deduction (starting in 2025 through 2028) of up to $6,000 that will apply to taxpayers, age 65 and older, who earn up to $75,000 for singles or $150,000 for joint filers. If you earn over that amount, the deduction starts phasing out.

Also note that the senior bonus is a deduction, not a refundable credit, so it will not help lower-earning seniors who owe no income taxes.

 

Who Owes SSA Taxes?

Whether or not you’ll be required to pay federal income tax on your Social Security benefits will depend on your income and filing status. About 40 percent of Social Security recipients have total incomes high enough to trigger federal income tax on their benefits.

To figure out if your benefits will be taxable, you’ll need to add up all of your “provisional income,” which includes wages, taxable and non-taxable interest, dividends, pensions and taxable retirement-plan distributions, self-employment, and other taxable income, plus half your annual Social Security benefits, minus certain deductions used in figuring your adjusted gross income.

To help you with the calculations, get a copy of IRS Publication 915 “Social Security and Equivalent Railroad Retirement Benefits,” which provides detailed instructions and worksheets. You can download it at IRS.gov/pub/irs-pdf/p915.pdf or call the IRS at 800-829-3676 and ask them to mail you a free copy.

After you do the calculations, the IRS says that if you’re single and your total income from all of the listed sources is:

  • Less than $25,000, your Social Security will not be subject to federal income tax.
  • Between $25,000 and $34,000, up to 50 percent of your Social Security benefits will be taxed at your regular income-tax rate.
  • More than $34,000, up to 85 percent of your benefits will be taxed.

If you’re married and filing jointly and the total from all sources is:

  • Less than $32,000, your Social Security won’t be taxed.
  • Between $32,000 and $44,000, up to 50 percent of your Social Security benefits will be taxed.
  • More than $44,000, up to 85 percent of your benefits will be taxed.

If you’re married and file a separate return, you probably will pay taxes on your benefits.

You can also find out if any of your benefits are taxable through the IRS online tax tool that asks a series of questions that will help you determine your status.

To limit potential taxes on your benefits, you’ll need to be cautious when taking distributions from retirement accounts or other sources. In addition to triggering ordinary income tax, a distribution that raises your gross income can bump up the proportion of your Social Security benefits that are subject to taxes.

 

How to File

If you find that part of your Social Security benefits will be taxable, you’ll need to file using Form 1040 or Form 1040-SR. You also need to know that if you do owe taxes, you’ll need to make quarterly estimated tax payments to the IRS, or you can choose to have it automatically withheld from your benefits.

To have it withheld, you’ll need to complete IRS Form W-4V, Voluntary Withholding Request, and file it with your local Social Security office.

 

State Taxation

In addition to the federal government, nine states – Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont and West Virginia – tax Social Security benefits to some extent too. If you live in one of these states, check with your state tax agency for details.