Ask the Tax Editor: Taxation of Social Security Benefits

Each week, in our Ask the Editor series, Joy Taylor, The Kiplinger Tax Letter editor, answers questions on topics submitted by readers. This week she's looking at six questions on the taxation of Social Security benefits. (Get a free issue of The Kiplinger Tax Letter or subscribe.)

Question: I am retired and receive monthly Social Security benefits. I heard they are now fully tax-free for federal income tax purposes. Is that correct?

Joy Taylor: Unfortunately, no. President Trump promised to make the benefits fully tax-free. But the complex process that Republican lawmakers in Congress used to pass the "One Big Beautiful Bill" last July didn't allow for this change.

Question: I receive monthly Social Security benefits. How much of the benefits will be taxed when I file my 2025 Form 1040?

Joy Taylor: It depends on whether you file a single return or a joint return and on the amount of your provisional income. Provisional income is generally equal to the combined total of (1) tax-exempt interest, (2) 50% of your Social Security benefits and (3) other non-Social Security income items that make up your adjusted gross income, minus certain deductions and exclusions.

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For single filers, if provisional income is less than $25,000, then the full amount of Social Security benefits are tax-free. If provisional income is between $25,000 and $34,000, then up to 50% of the benefits is taxable. If provisional income is over $34,000, then up to 85% of the benefits is taxed.

For joint filers, if provisional income is less than $32,000, then the Social Security benefits are fully tax-free. If provisional income is between $32,000 and $44,000, then up to 50% of the benefits is taxable. If provisional income is over $44,000, then up to 85% of the benefits is taxed.

3. Why are the provisional income figures so low?

Question: I have been receiving Social Security benefits for many years. I noticed while figuring the tax on my benefits that the $25,000, $34,000, $32,000 and $44,000 provisional income thresholds never change. Why is that?

Joy Taylor: Many tax breaks and income levels are indexed to inflation each year. But not the provisional income thresholds for taxing Social Security benefits. For decades, they have stayed static at $25,000, $34,000, $32,000 and $44,000. Democrats have proposed bills over the years to raise the thresholds, but they never pass. That’s because the bills also include payroll tax hikes on upper-incomers, which make the bills a nonstarter with Republicans.

4. How do I calculate taxable benefits when I have Medicare premiums taken out?

Question: I am retired and receive Social Security benefits. I have my monthly Part B Medicare premiums paid from my Social Security benefits, thus lowering the amount of benefits I receive each month. Which figure do I use to determine the amount of my Social Security benefits that might be subject to federal tax?

Joy Taylor: You are not alone. Most Social Security beneficiaries have their Medicare premiums deducted from their monthly Social Security checks. To calculate the amount of Social Security benefits for federal income tax purposes, you would use the amount prior to the reduction for Medicare premiums. You can find this number in box 5 of the Form SSA-1099 that you receive.

Question: I live in Virginia and I just started receiving Social Security benefits last year. I know I have to pay federal tax on the benefits, but how does Virginia tax them?

Joy Taylor: Most states, including Virginia, exempt Social Security benefits from state income tax. But not all do. The eight outliers that tax all or part of the benefits are Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont. Many of these states have exceptions based on income figures.

See States That Tax Social Security Benefits in 2026

Question: I want to have federal income tax withheld from my Social Security benefits. How do I request this?

Answer: Fill out Form W-4V to voluntarily request that federal tax be withheld from your Social Security benefits, and mail it to your local Social Security office or drop it off in person. You can elect to have 7%, 10%, 12% or 22% of your monthly Social Security benefits taken out.

Alternatively, if you have an online Social Security account, you can request changes to your withholding at: https://www.ssa.gov/manage-benefits/request-withhold-taxes

About Ask the Editor, Tax Edition

Subscribers of The Kiplinger Tax Letter, The Kiplinger Letter and The Kiplinger Retirement Report can ask Joy questions about tax topics. You'll find full details of how to submit questions in each publication. Subscribe to The Kiplinger Tax Letter, The Kiplinger Letter or The Kiplinger Retirement Report.

We have already received many questions from readers on topics related to tax changes in the One Big Beautiful Bill, retirement accounts and more. We will continue to answer these in future Ask the Editor roundups. So keep those questions coming!

Disclaimer

Not all questions submitted will be published, and some may be condensed and/or combined with other similar questions and answers, as required editorially. The answers provided by our editors and experts, in this Q&A series, are for general informational purposes only. While we take reasonable precautions to ensure we provide accurate answers to your questions, this information does not and is not intended to, constitute independent financial, legal, or tax advice. You should not act, or refrain from acting, based on any information provided in this feature. You should consult with a financial or tax advisor regarding any questions you may have in relation to the matters discussed in this article.