At what age is ss not taxable

Some of you have to pay federal income taxes on your Social Security benefits. This usually happens only if you have other substantial income in addition to your benefits (such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return).

Table of Contents Show

Taxation for Individuals
Taxation for Married Couples
Paying Taxes
Considerations

You will pay tax on only 85 percent of your Social Security benefits, based on Internal Revenue Service (IRS) rules. If you:

file a federal tax return as an "individual" and your combined income* is
- between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits.
- more than $34,000, up to 85 percent of your benefits may be taxable.
file a joint return, and you and your spouse have a combined income* that is
- between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits.
- more than $44,000, up to 85 percent of your benefits may be taxable.
are married and file a separate tax return, you probably will pay taxes on your benefits.

Your adjusted gross income
+ Nontaxable interest
+

½ of your Social Security benefits

= Your "combined income"

Each January, you will receive a Social Security Benefit Statement (Form SSA-1099) showing the amount of benefits you received in the previous year. You can use this Benefit Statement when you complete your federal income tax return to find out if your benefits are subject to tax.

If you currently live in the United States and you misplaced or didn't receive a Form SSA-1099 or SSA-1042S for the previous tax year, you can get an instant replacement form by using your online my Social Security account. If you don't already have an account, you can create one online. To get your replacement Form SSA-1099 or SSA-1042S, select the "Replacement Documents" tab to get the form.

If you do have to pay taxes on your Social Security benefits, you can make quarterly estimated tax payments to the IRS or choose to have federal taxes withheld from your benefits.

For more information about taxation of benefits, read our Retirement Benefits booklet or IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits.

Social Security benefits subject to taxation are taxed at normal tax rates.

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At 65 to 67, depending on the year of your birth, you are at full retirement age and can get full Social Security retirement benefits tax-free. However, if you’re still working, part of your benefits might be subject to taxation. The IRS adds the figures for your earnings and half your Social Security benefits. If the total exceeds the Internal Revenue Service’s income limits, your benefits will be taxed.

Taxation for Individuals

If you’re filing your tax return as an individual and your combined income tops $25,000 per year, the IRS taxes 50 percent of your Social Security benefits. Up to 85 percent of your benefits are taxed if your total annual income is more than $34,000.

Taxation for Married Couples

If you’re married, your spouse’s earnings are calculated as part of your total annual income for tax purposes. This means that even if you’re not working or making a substantial amount at your job, your spouse’s income can affect your Social Security benefits. As of 2012, if your annual combined income tops $32,000, up to 50 percent of your Social Security benefits are taxed. If the total household income surpasses $44,000 per year, up to 85 percent of your benefits are taxed.

Paying Taxes

If you’re required to pay taxes on your Social Security benefits, you have several ways to do so. You can pay it all by the tax-due date, usually April 15. You can make estimated tax payments throughout the year to the IRS. Another option is to ask the Social Security Administration to withhold taxes from your monthly benefit checks. Social Security benefits are subject only to federal income taxes.

Considerations

Once you reach full retirement age, the SSA gives you the option to file for benefits but not start receiving those payments until later. You can avoid taxes on your Social Security benefits by postponing benefits until you retire. Not only would you not pay taxes on your benefits while you wouldn't be receiving them, you'd also accumulate delayed retirement credit, which increases your benefits once you do start collecting. For example, if your full retirement age is 66, your benefit amounts will increase by 8 percent each year that you delay payments until 70, the latest age to which you can delay retirement benefits.