Monthly Social Security payments are a crucial form of federal financial support for senior citizens. However, many retirees are uncertain about how these payments are taxed.
With tax season well underway, filers have until April 15 to submit their 2025 return; many are wondering whether seniors who receive Social Security payments need to file a tax return. There are certain tax credits and benefits that would allow for the sending of a refund, even in cases where the Social Security beneficiary does not have to pay taxes on their income.
Simply put, senior citizens are subject to the exact tax requirements as other adults. There is no age at which you no longer have to submit a tax return, and most senior citizens do need to file taxes every year.
However, if Social Security is your sole source of income, it is generally not taxable, as long as the amount you receive in benefits is below certain thresholds. This applies to both spouses if they file jointly.
American seniors 65 and older, according to the IRS, do not have to file a tax return if taxable gross income at the end of 2025 was below $17,550 (single filer), $25,625 (head of household), or in the case of married couples $34,700 or more (both spouses 65 or older) and $33,100 (one spouse under 65). The latter amount also applies to those filing as a qualifying surviving spouse. Note, taxpayers who are married and filing separately, the income threshold is $5 or more.
Seniors should be aware that the 2025 One Big Beautiful Bill Act allows eligible American taxpayers who are 65 or older to deduct up to $6,000 each from their taxable income for tax years 2025 through 2028. The adjusted gross income must be less than $75,000 for single filers and $150,000 for couples. The deduction phases out above those thresholds.
How are Social Security retirement benefits taxed?
Since 1983, Social Security payments have been subject to taxation if the recipient’s earnings exceed a certain threshold. However, even the highest earners on Social Security will not be taxed on the entire amount they receive. The maximum taxable amount is 85 percent of the total Social Security benefit received.
The federal government begins taxing 50% Social Security benefits, when gross income is at least $25,000 if you’re an individual or $32,000 if you’re a couple filing jointly. When beneficiaries’ gross income exceeds $34,000 for an individual or $44,000 for a couple, then up to 85% of your benefits payments will be subject to tax.
To calculate whether you are liable to pay tax on your Social Security benefits, you can complete the IRS’ “Figuring Your Taxable Benefits” worksheet, which you will find on page 7 of the 2025 Publication 915.
During tax season, all Social Security recipients will receive a Social Security Benefit Statement (Form SSA-1099) that details the full amount of benefits received in 2024. You can use this statement to calculate your liability for this tax season.
Note that while most states had stopped taxing Social Security benefits, nine states still did in 2025. These include Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia.
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