Social Security benefits are for recipients of (RSDI) retirement, survivor, and disability insurance benefits. Therefore, these beneficiaries get money from the Administration because a worker paid payroll taxes in the United States. For your information, these benefits from SSA do not include Supplemental Security Income (SSI) benefits.
Keep in mind that SSI benefits are not taxable. However, some Social Security recipients on RSDI may need to pay taxes to the IRS in 2025. Therefore, they may need to file a 2024 tax return before the April 15 deadline.
If so, the net amount of your monthly SSA payments is reported in Box 5 of Form SSA-1099, Social Security Benefit Statement. Then, you must report that amount on line 6a of Form 1040-SR, U.S. Tax Return for Seniors, or Form 1040, U.S. Individual Income Tax Return.
RSDI and IRS Tax Returns
In case you didn’t know it, the taxable portion of the Social Security benefits that is included in your income and used to work out your tax liability depends on the total amount of your income and RSDI benefits for the 2024 taxable year. Take note of this because you should report the taxable portion of your RSDI benefits on line 6b of Form 1040 or Form 1040-SR.
The Social Security Administration states that your retirement, survivor, or disability insurance benefits may be taxable if:
- the total of (1) one-half of your RSDI benefits
- plus (2) all of your other income (which includes tax-exempt interest) is greater than the base amount for your filing status
For your information, the IRS has set different thresholds for individuals (head of household, single, surviving spouse), married couples filing jointly, married couples filing separately, and living together or not.
IRS base amounts for RSDI recipients
Most RSDI recipients who do not have combined income (e.g. work and Social Security benefits), do not need to file a 2024 tax return. Nevertheless, if you exceed these limits, you will need to file:
- 25,000 dollars if you are a qualifying surviving spouse, single, or head of household.
- 25,000 dollars if you are married but you are filing separately and lived apart from your spouse for the whole year.
- 32,000 dollars if you are married but you are filing jointly.
- $0 if you’re married filing separately and lived with your spouse at any time during the (2024) tax year.
In general, you will pay Federal income taxes on your benefits if your combined income (50 percent of your Social Security benefit amount plus any other earned income) is higher than $25,000 per year as an individual (single filer).
Those who are filing jointly and whose combined income exceeds $32,000 per year will also have to pay Federal income taxes. Not sure how to pay it? It is possible to withhold taxes from your payment.
If you do not like withholding or it is already too late, you can simply pay the IRS. Withholding ranges from 7%, 10%, 12%, or 22%.