Are my Social Security benefits taxed? What to know

( NewsNation ) — According to the Social Security Administration, nearly 68 million Americans receive a Social Security check monthly. A majority of those are retired.

The beginning of tax season is a few months away. Still, tax professionals typically begin preparing on their end in October and November and may reach out to past and potential clients.

Here’s what you need to know about Social Security benefits and taxes.

What is Social Security?

The government program provides financial assistance to Americans throughout their lives, including retirement.

Social Security is the major source of income for people over the age of 65, with an average monthly benefit of $1,918 a month.

People with medical conditions that affect their ability to work for 12 months or longer may also receive Social Security benefits through Social Security Disability Insurance (SSDI).

Surviving spouses and children of someone who dies may apply for survivor benefits through Social Security.

The program is funded by taxes that employees and employers pay while an individual is working. People who receive these benefits have paid Social Security taxes throughout their working lifetime.

In total, the government will shell out about $1.5 trillion this year in Social Security benefits, according to the SSA.

Is Social Security income taxable?

Yes, the federal government taxes Social Security income, but whether you end up paying taxes depends on the total amount of your income and benefits for the taxable year.

If your combined income is above a certain threshold, you may be liable for paying taxes after filing a tax return.

Combined income is calculated by adding one-half of your benefits to all other income. If the total is more than $25,000 for individual or married couples filing separately, you may owe taxes. If the total is greater than $32,000 for married couples filing jointly, you may owe taxes.

On the state level, nine states tax benefits in addition to the federal government’s tax. As of 2024, those include Colorado, Connecticut, Kansas, Montana, New Mexico, Rhode Island, Utah and Vermont, according to NerdWallet .

How much of my Social Security benefits will be taxed?

Up to 50% of benefits will be taxed if a single individual’s income is between $25,000 to $34,000 or if a married couple filing jointly has an income between $32,000 and $44,000.

Up to 85% of benefits will be taxed if a single individual’s income is greater than $34,000, and for married couples, the income threshold is over $44,000.

The IRS offers a free online interactive tax assistant that will help you determine if any of your benefits are taxable.

Is Supplemental Security Income taxed?

No, Supplemental Security Income (SSI) is not taxed. Under this program, you must be at least 65 years old, blind or have a disability and have “limited” income and resources, according to the Social Security Administration.

SSI differs from Social Security benefits in that a recipient must show a financial need.

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