Understanding How Social Security Income Affects Your Taxes

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Social Security benefits can be taxable if your total income, including your benefits, is greater than the limit. The limit is determined by your filing status. Social Security benefits include monthly retirement, survivor, and disability benefits. If you receive Social Security, here are five key points to know about how your taxes are affected by it. 

Social Security tax forms

You should receive Form SSA-1099, Social Security Benefit Statement. The total amount of benefits you receive from the Social Security Administration is in Box 5 of the statement.  

Social Security benefits that are taxable

To determine if your benefits are taxable, half of your benefits plus all other income (including tax-exempt interest) are added together. If this total is more than the base amount of your filing status, you are required to pay taxes on your benefits. 

The base amounts are: 

  • $25,000 – single, head of household, or qualifying widow(er)
  • $25,000 – married filing separately and lived apart from your spouse the entire year
  • $32,000 – married filing jointly
  • $0 – married filing separately and lived with your spouse any time during the tax year 

Where to report net Social Security on your tax return

If your benefits are taxable, your net amount of Social Security benefits should be recorded on line 5a of Form 1040, U.S. Individual Income Tax Return.  

Where to report taxable Social Security on your tax return

The taxable portion of your Social Security is reported on line 5b of Form 1040. This amount is based on the total amount of your income and benefits for the tax year. NoteTaxSlayer determines if your benefits are taxable based on the information you provide and calculates the taxable portion for you.  

Reporting Social Security benefits when you are married

If you’re married filing jointly, you and your spouse will combine income and Social Security benefits to calculate what is taxable. 

When you file with TaxSlayer, you’ll be guided through the tax filing experience step by step. The calculations are done for you, and your information will be entered into the correct form before it is sent to the IRS.  Log in or create a new account to get started. 

This article is up to date for tax year 2021 (returns filed in 2022). 

This article is intended to provide general information to the public and does not provide personalized tax, investment, legal, or business advice. You should seek the assistance of a professional for advice on taxes, investments, and any other financial, legal, or business matter pertinent to your individual situation.

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