Are Social Security Benefits Taxable? How to Tell and What to Do
Up to 85% of your Social Security benefits can be taxable, depending on your other income. Many retirees owe nothing, and others are surprised by a bill. Here's how to tell where you stand.
By the Enrolled Agents and CPAs at A&W Tax Services · Updated
Provisional income
The IRS uses a figure often called provisional income: your adjusted gross income, plus tax-exempt interest, plus half of your Social Security benefits. Pensions, IRA and 401(k) withdrawals, wages, and interest and dividends all count toward it.
The thresholds
- Single, head of household or qualifying surviving spouse: up to 50% of benefits may be taxable above $25,000 of provisional income, and up to 85% above $34,000
- Married filing jointly: up to 50% above $32,000, and up to 85% above $44,000
- Married filing separately and living together at any time during the year: up to 85% is generally taxable
These thresholds aren't adjusted for inflation, so more retirees cross them every year. Texas has no state income tax, so benefits aren't taxed by the state.
Avoid a surprise bill
- Ask Social Security to withhold federal tax with Form W-4V, at 7%, 10%, 12% or 22% of each payment
- Or make quarterly estimated tax payments
- Plan IRA and 401(k) withdrawals so a large one-time distribution doesn't make more of your benefits taxable
- Roth IRA withdrawals that qualify don't count toward provisional income
Deductions for older taxpayers
Taxpayers 65 and older get an additional standard deduction, and a temporary extra deduction for people 65 and over applies for tax years 2025 through 2028, subject to income limits. Both can reduce the tax on your benefits and other retirement income.
Your SSA-1099
Each January, Social Security mails Form SSA-1099 showing the benefits you received. Bring it to your tax appointment, along with any 1099-R forms for pensions and retirement account withdrawals.