Here are some of the most common questions about Social Security benefits and taxes.
Social Security Tax Forms
Will I get a tax statement from social security?
Yes, the Social Security Administration will send you a Form SSA-1099 in January for the benefits you received during the previous calendar year. In some cases, they no longer send payments by postal mail and instead send you an email notification telling you to log in to your Social Security account.
Remember that even though Social Security income isn’t taxable in many cases, it can be taxable. It can also affect your eligibility for other tax benefits. Therefore, you must check if you need to file a tax return each year.
Note: Many people ask about getting a W-2 from Social Security. You get an SSA-1099 instead of a W-2 form like you’d get from a job.
Where can I get a copy of my SSA-1099?
If you never received your SSA-1099, you can log in to your Social Security account at SSA.gov to download a copy.
What is IRS Notice 703?
IRS Notice 703 is an informational notice that comes with your SSA-1099. It gives you a worksheet to help you determine whether your Social Security is taxable.
Getting a 703 Notice doesn’t mean that you owe taxes or did anything wrong. Everyone usually gets it since many people don’t realize they may have to pay taxes on Social Security.
What is the IRS form for Social Security income?
Social Security income goes directly on your Form 1040 tax return. Your tax software will help you calculate the taxable amount.
You can find more information on calculating your taxes in IRS Publication 915.
Social Security Taxes
Is Social Security income?
Social Security does count as income. However, some programs that have income limits don’t count Social Security, so you should check the specific rules for your situation.
What age do you stop paying taxes on Social Security?
There is no age to stop paying taxes on Social Security. Whether you pay taxes on Social Security depends on your total income.
How much tax gets deducted from your Social Security check?
There is no automatic tax withholding on Social Security checks. If you’ll owe taxes, you can contact the Social Security Administration to request voluntary federal tax withholding.
State taxes generally aren’t taken out of Social Security even when you have to pay them and even if you requested federal tax withholding.
Is a 401(k) withdrawal considered income for Social Security?
You don’t have to pay Social Security taxes on a 401(k) withdrawal. A 401(k) withdrawal also generally won’t affect your benefits.
A 401(k) withdrawal can increase your Adjusted Gross Income and potentially make your Social Security benefits taxable. Many people work with a financial planner to time their 401(k) withdrawals and when they start taking Social Security in order to minimize taxes.
Do you pay state taxes on Social Security?
Federal law allows states to tax Social Security. Whether states do depends on their tax policy. There are currently 12 states that tax at least some Social Security benefits.
What states tax Social Security?
- Alabama: No
- Alaska: No state income tax
- Arizona: No
- Arkansas: No
- California: No
- Colorado: Under age 65 = First $20,000 not taxable; Age 65+ Not taxable
- Connecticut: Depends on AGI
- Delaware: No
- Florida: No state income tax
- Georgia: No
- Hawaii: No
- Idaho: No
- Illinois: No
- Indiana: No
- Iowa: No
- Kansas: Depends on AGI
- Kentucky: No
- Louisiana: No
- Maine: No
- Maryland: No
- Massachusetts: No
- Michigan: No
- Minnesota: Follows federal rules
- Mississippi: No
- Missouri: Depends on AGI
- Montana: Depends on AGI
- Nebraska: Depends on AGI
- Nevada: No state income tax
- New Hampshire: No state income tax
- New Jersey: No
- New Mexico: Depends on AGI
- New York: No
- North Carolina: No
- North Dakota: No
- Ohio: No
- Oklahoma: No
- Oregon: No
- Pennsylvania: No
- Rhode Island: Depends on AGI
- South Carolina: No
- South Dakota: No state income tax
- Tennessee: No state income tax
- Texas: No state income tax
- Utah: Follows federal rules
- Vermont: Depends on AGI
- Virginia: No
- Washington: No state income tax
- West Virginia: Depends on AGI
- Wisconsin: No
- Wyoming: No state income tax
Social Security Info for Children
How do I get my child’s Social Security Number?
You don’t automatically get a Social Security Number at birth.
Most hospitals will ask you whether you want to apply for a Social Security number when your baby is born. This is the easiest way to do it.
If you apply later, you will need to bring your child’s birth certificate and your identification to a Social Security office.
If you forgot your child’s Social Security Number you will need to visit a local Social Security office and bring the same type of documents you needed to apply for a Social Security Number. There is no way to look up your child’s Social Security Number online if you forgot it.
Can both parents have a child’s Social Security card?
You usually only get one Social Security card per child. The only way to get an additional card is to request a replacement.
If one parent only needs the child’s Social Security Number and not the physical card, you can also make a photocopy or keep a digital image.
Social Security Disability
Do you pay taxes on Social Security Disability?
Social Security Disability follows similar tax rules to Social Security retirement benefits. Social Security disability may be taxable depending on your total income.
States that tax Social Security retirement benefits may also tax SSDI benefits.
Does SSDI count as income?
SSDI can affect your taxable income or eligibility for income-based programs depending on the specific rules.
SSDI also usually counts as income for things like qualifying for a loan or to rent an apartment.