Many retirees and disabled individuals rely primarily—or entirely—on Social Security benefits for income. A common question for people in this situation is: “Do I have to file a tax return if Social Security is my only source of income?” The answer depends on several factors, including your total income, filing status, and whether you received any other taxable income. In this detailed blog, we’ll explain the tax rules surrounding Social Security benefits and when filing a return is required.
1. Is Social Security Taxable?
Social Security benefits may be partially taxable, depending on your overall income. However, if Social Security is your only source of income, it’s very likely you won’t owe any federal income tax and may not need to file a tax return.
The IRS uses a specific formula called “provisional income” to determine if any portion of your Social Security benefits is taxable.
2. What Is Provisional Income?
Provisional income is the sum of the following:
- Your adjusted gross income (AGI) — excluding Social Security
- Tax-exempt interest (such as municipal bond interest)
- 50% of your annual Social Security benefits
This provisional income is compared to specific IRS thresholds to determine if your benefits are taxable.
3. IRS Income Thresholds for Taxing Social Security
The following thresholds determine if your Social Security is taxable:
For Single Filers:
- If your provisional income is less than $25,000: None of your benefits are taxable.
- $25,000–$34,000: Up to 50% of your benefits may be taxable.
- Over $34,000: Up to 85% of your benefits may be taxable.
For Married Filing Jointly:
- If combined provisional income is less than $32,000: None of your benefits are taxable.
- $32,000–$44,000: Up to 50% of your benefits may be taxable.
- Over $44,000: Up to 85% of your benefits may be taxable.
But again, if Social Security is your only source of income, your provisional income is simply half of your benefits—and it’s usually below these thresholds.
4. Filing Requirement Based on Age and Filing Status
Every year, the IRS sets income thresholds based on filing status and age to determine who must file a return. If your total gross income falls below these thresholds, you’re generally not required to file.
Examples for Tax Year 2024:
- Single, under 65: Must file if gross income is $13,850 or more.
- Single, 65 or older: Threshold is $15,700.
- Married filing jointly, both under 65: Threshold is $27,700.
- Married filing jointly, both 65 or older: Threshold is $30,700.
If you only receive Social Security and your gross income is zero or below these thresholds, you usually don’t need to file.
5. When You May Still Want to File a Return
Even if you’re not required to file, you may want to file a return in certain situations:
- Refund of Withheld Taxes: If any federal income tax was withheld from your Social Security or a pension (Form SSA-1099 shows this), you need to file a return to get that money back.
- Eligible for Tax Credits: You may qualify for credits such as the Earned Income Tax Credit (EITC) or the Credit for the Elderly or Disabled if you have limited income beyond Social Security.
- Avoid Identity Theft: Filing a return prevents fraudsters from filing one in your name.
- Applying for Loans or Benefits: Some lenders or government programs may ask for a tax return as proof of income, even if you’re not required to file.
6. Receiving Other Income? You Might Need to File
If you have other sources of income in addition to Social Security, you may be required to file. Common examples include:
- Pension or annuity distributions (reported on Form 1099-R)
- Taxable interest and dividends (1099-INT or 1099-DIV)
- Wages from part-time jobs
- Capital gains from selling stocks or property (1099-B)
- IRA or 401(k) withdrawals
These additional sources of income could push your provisional income high enough to make some of your Social Security benefits taxable.
7. How to Report Social Security Benefits
If you do need to file, you’ll report your Social Security income using Form SSA-1099, which you should receive from the Social Security Administration each January. The benefits amount goes on Line 6a of your Form 1040, and the taxable portion goes on Line 6b.
8. What About State Taxes?
While many states follow federal guidelines and do not tax Social Security benefits, some states have their own rules. As of 2024, the following states still tax some or all Social Security benefits:
- Colorado
- Connecticut
- Kansas
- Minnesota
- Montana
- New Mexico
- Rhode Island
- Utah
- Vermont
- West Virginia
Check with your state’s tax department or a local tax advisor to determine your obligations.
9. What If I Filed Last Year But Don’t Need To This Year?
If you filed a return in previous years but now only receive Social Security, and no other income, you might not be required to file again. However, it’s a good idea to keep records and verify your income sources annually to confirm your status. You can also use the IRS Interactive Tax Assistant to check each year.
10. Conclusion: Most on Social Security Alone Don’t Need to File
In most cases, if Social Security is your only source of income, you are not required to file a federal income tax return. That said, filing may still be beneficial depending on your financial situation or if taxes were withheld. The best approach is to check your total income and compare it against IRS thresholds annually to ensure you stay in compliance and take advantage of any refunds or credits you might be entitled to.
When in doubt, consider speaking with a qualified tax professional, especially if you’re navigating retirement, survivor benefits, or planning for future income sources.
