One of the most common questions we hear is simple: do I have to pay tax on my Social Security?
The honest answer is: it depends on your total income. Here is how to think about it.
The quick rule of thumb
The IRS looks at what it calls your "combined income": your adjusted gross income, plus any tax-free interest, plus half of your Social Security benefits.
- If you file as an individual and that total is under $25,000, your Social Security is generally not taxed.
- Between $25,000 and $34,000, up to half of your benefits may be taxable.
- Above $34,000, up to 85% of your benefits may be taxable.
- For married couples filing jointly, the thresholds are $32,000 and $44,000.
"Up to 85% taxable" does not mean you pay 85% in tax. It means that portion of your benefit gets counted as income, and you pay your normal tax rate on it.
What about Connecticut?
Connecticut exempts Social Security from state income tax for most seniors whose income is below certain limits. The limits change from time to time, so call us and we will check the current numbers for your situation.
What to do
1. Each January, the Social Security Administration mails you a form SSA-1099 showing your total benefits for the year. Keep it with your tax papers. 2. If your only income is Social Security, you likely owe nothing and may not need to file at all. 3. If you have a pension, savings interest, or part-time work on top of Social Security, it is worth a free review.
Free help, no sales pitch
Our Certified CHOICES Counselors can help you understand how benefits fit together, and we can point you to free tax preparation help for seniors. Call the Quinebaug Valley Senior Center at (860) 774-1243, Monday through Friday, 9:00 AM to 2:00 PM.
This guide is general information, not tax advice. For your exact situation, we will help you find a qualified, free tax preparer.
Questions about this?
Call us at (860) 774-1243 — free, confidential, no appointment needed.