Now that 2023 is well underway, tax filing day (April 18) is getting closer by the day. If you’re like most Americans, you’re probably getting ready to file your taxes and looking forward to getting your refund.
Regrettably, because of recent tax changes, many taxpayers may receive lesser refunds this year. Your tax burden and the amount of the return you are entitled to depend on whether you recently started receiving Social Security benefits.
Your tax filing status and your “combined income” which includes any tax-exempt interest you earned throughout the year, plus half of your Social Security payments and your adjusted gross income determine whether you’ll have to pay federal taxes on Social Security.
The rest depends on the sum and how you submit taxes after you tally up all these figures. For more information, refer to the chart below:
| Tax Filing Status | Combined Income | Amount Taxed |
| Individual | < $25,000 | No taxes |
| Individual | $25,000-$34,000 | 50% of your SS benefits |
| Individual | > $34,000 | 85% of your SS benefits |
| Married, filing jointly | < $32,000
|
No taxes |
| Married, filing jointly | $32,000-$44,000 | 50% of your SS benefits |
| Married, filing jointly | > $44,000 | 85% of your SS benefits |
Also, 13 states tax Social Security benefits in some way, according to the Tax Foundation. If your state does tax Social Security, ask an accountant what that would entail for your tax bill.
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How Can Social Security be Taxed?
The formula to figure out whether your Social Security benefits are taxed is as follows: Tax-free interest plus half of Social Security benefits plus all other income equals combined or provisional income.
If your total or provisional income reaches the following criteria, you may be required to pay federal income tax on up to 85% of your Social Security benefits:
| Filing Status | Combined or Provisional Income Threshold | Percentage of Benefit Subject to Taxation |
| Single | Up to $25,000
$25,000 – $34,000 Over $34,000 |
0%
Up to 50% Up to 85% |
| Head of household | Up to $25,000
$25,000 – $34,000 Over $34,000 |
0%
Up to 50% Up to 85% |
| Qualifying widow or widower | Up to $25,000
$25,000 – $34,000 Over $34,000 |
0%
Up to 50% Up to 85% |
| Married, filing jointly | Up to $32,000
$32,000 – $44,000 Over $44,000 |
0%
Up to 50% Up to 85% |
| Married, filing separately (and living apart for the entire tax year) | Up to $25,000
$25,000 – $34,000 Over $34,000 |
0%
Up to 50% Up to 85% |
| Married, filing separately (and living together at some point during the tax year) | $0 | Up to 85% |
State Taxes on Social Security
Certain states, including Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia, also tax the Social Security benefits received by their citizens. These states don’t all adhere to federal regulations. They typically use their own income requirements and criteria, which can differ greatly.
Tax filing instructions for Social Security income. Here’s how to report your Social Security income while filing your taxes:
- Step 1: Find Form SSA-1099, a Social Security benefits statement for the previous tax year that is published each January.
- Step 1: Line 5a of Form 10140 asks you to enter the number of benefits you received.
- Step 2: Online 5b of Form 1040, enter the amount of your Social Security benefits subject to federal income tax.
If you require assistance, speak with a qualified tax expert.
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