Social Security payments: What to know about taxable income in 2025
Social Security payments are a key source of income for millions of Americans in retirement, but many are surprised to learn that Social Security benefits may be taxable depending on their income level.
This guide answers common questions about how Social Security works, when benefits are taxed, and how to access help from the Social Security Administration (SSA).
Are Social Security payments taxable?
Yes, Social Security payments can be taxed if your total income exceeds certain thresholds.
The IRS calculates your provisional income by adding:
- Your adjusted gross income (AGI)
- Nontaxable interest (like from municipal bonds)
- 50% of your Social Security benefits
2025 income thresholds for taxation
- Single filers:
- $25,000 to $34,000: up to 50% of benefits taxed
- Over $34,000: up to 85% of benefits taxed
- Married filing jointly:
- $32,000 to $44,000: up to 50% of benefits taxed
- Over $44,000: up to 85% of benefits taxed
If your income is below these thresholds, your Social Security benefits are not taxed.
How are Social Security benefits taxed?
Taxable Social Security income is added to your overall taxable income and taxed at your ordinary income tax rate. The Social Security Administration does not withhold taxes automatically, but recipients can request voluntary withholding by submitting Form W-4V.
You can also make quarterly estimated tax payments to the IRS if you prefer.
How is Social Security calculated?
Social Security payments are calculated based on your highest 35 years of earnings adjusted for inflation. The SSA uses a formula that includes:
- Average Indexed Monthly Earnings (AIME)
- A benefit formula that applies three bend points to determine your Primary Insurance Amount (PIA)
- Adjustments based on when you choose to start benefits (early, at full retirement age, or delayed)
For 2025, the maximum monthly benefit for someone retiring at full retirement age is $3,900, though most recipients receive less.
Are Social Security offices open for walk-ins?
Yes, Social Security offices are open for walk-in visits, though appointments are still encouraged to reduce wait times. Walk-in services include:
- Applying for benefits
- Replacing a lost Social Security card
- Updating direct deposit or address information
- Getting help with overpayment notices or appeals
To find your nearest office, visit the SSA Office Locator at www.ssa.gov/locator.
When did Social Security start?
The Social Security program began in 1935 under President Franklin D. Roosevelt. Monthly payments were first issued in 1940, and the program has expanded to include disability, survivors, and supplemental benefits over time.
Will Social Security run out?
No, Social Security will not run out, but changes may be needed. According to the SSA’s 2024 Trustees Report, the combined trust funds are projected to become depleted by 2034. If Congress takes no action, benefits would still be paid—though potentially at a reduced rate of around 80%.
Lawmakers have several options to address the shortfall, including increasing payroll taxes, raising the retirement age, or modifying benefit formulas.