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After decades of working and paying into the Social Security system, receiving your monthly benefits checks can feel like a well-earned reward — and it is. But for millions of seniors, the funds they get from their Social Security checks are also a critical financial lifeline, one that’s used to cover necessary expenses, from housing to healthcare and daily living costs. Without these benefits, many retirees would struggle just to make ends meet.
That’s why there are federal laws in place to protect these benefits from items like garnishment by private debt collectors. These laws help protect retirees from losing a crucial component of their retirement budgets. But while there may be extra protections in place, the reality is that there are still things that can put this money at risk. Taxes, for example, are still a part of life, even in retirement, and if you aren’t compliant with federal tax law, the Internal Revenue Service (IRS) can take a portion of your Social Security to recoup what’s owed.
That, in turn, brings up an important question: Do you have to file taxes if you’re on Social Security? And, if so, when are you required to do that?
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Do you need to file taxes if you’re on Social Security?
The simple answer to that question is: it depends on your total income.
If Social Security is your only source of income, you probably don’t need to file a tax return. The IRS generally doesn’t require you to file if your total income falls below certain thresholds. For example, single filers aged 65 or older don’t need to file if their gross income was under $16,550 at the end of 2024, while married couples filing jointly with both spouses over 65 have a threshold of $32,300.
If you have additional income sources beyond Social Security, though — such as pensions, 401(k) distributions, part-time work or investment income — you’ll likely need to file. This is where it gets a bit more complex. You’ll need to calculate what’s called your combined income, which is your adjusted gross income plus nontaxable interest plus half of your Social Security benefits.
Even if you’re not required to file based on income thresholds, though, you might still want to file your taxes if you had taxes withheld from other income or if you qualify for refundable tax credits. In these cases, filing could result in a refund.
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When are Social Security benefits taxable?
In general, your Social Security benefits become taxable if your combined income exceeds certain IRS thresholds. The thresholds for this year’s tax season are as follows:
- Single filers: If your combined income is between $25,000 and $34,000, up to 50% of your benefits may be taxable. If it exceeds $34,000, up to 85% may be taxable.
- Married couples filing jointly: If your combined income is between $32,000 and $44,000, up to 50% of your benefits may be taxable. If it exceeds $44,000, up to 85% may be taxable.
- Married couples filing separately: Generally, those who file separately and live with their spouse for part of the year will likely have to pay taxes on their benefits.
If your total income falls below these thresholds, your Social Security benefits may remain tax-free. However, if you have other sources of income, you could end up owing taxes on a portion of your benefits.
What happens if you don’t pay taxes on your Social Security benefits?
If you’re required to pay taxes on your Social Security benefits but don’t, the consequences are generally similar to those for not paying any other type of tax. You might initially receive a notice from the IRS stating that you owe additional taxes. If you ignore this notice, interest and penalties will begin to accumulate on the unpaid amount. The IRS charges interest on unpaid taxes from the due date until the date of payment, even if you file for an extension.
In addition to interest charges, you might face a failure-to-file penalty of 5% of the unpaid tax amount for each month your return is late, up to a maximum of 25%. In severe cases of non-compliance, the IRS could potentially garnish future Social Security payments or other retirement income to satisfy the tax debt. While the IRS generally can’t take all of your Social Security benefits to pay your tax debt, they can take up to 15% through the Federal Payment Levy Program — so it’s important to deal with the issue as soon as possible.
The bottom line
Not all Social Security recipients need to file a tax return, but some do, depending on their total income. If Social Security is your only income source, you likely won’t need to. However, if you have other earnings — such as a pension, dividends, or a side job — your benefits might be partially taxable. If you’re concerned about taxes on your benefits, consider adjusting your withholding or making estimated payments. And when in doubt, consulting a tax professional may provide clarity.
