How is My Social Security Taxed?

Income Taxes and Your Social Security Benefit 

About 40% of people who get Social Security must pay federal income taxes on their benefits. This usually happens if you have other substantial income in addition to your benefits. Substantial income includes wages, earnings from self-employment, interest, dividends, and other taxable income that must be reported on your tax return.

You will pay tax on your Social Security benefits based on Internal Revenue Service (IRS) rules if you:

• File a federal tax return as an individual and your combined income* is

• Between $25,000 and $34,000, you may have to pay income tax on up to 50% of your benefits.

• More than $34,000, up to 85% of your benefits may be taxable.

• File a joint return, and you and your spouse have a combined income* that is

• Between $32,000 and $44,000, you may have to pay income tax on up to 50% of your benefits.

• More than $44,000, up to 85% of your benefits may be taxable.

To calculate *Combined Income:

Your adjusted gross income (wages, interest, pensions, dividends, etc.)
+ Nontaxable interest
+ ½ of your Social Security benefits
= Your "combined income

Each January, you receive a Social Security Benefit Statement (Form SSA-1099) showing the amount of benefits you received in the previous year. You can use this Benefit Statement when you complete your federal income tax return to find out if your benefits are subject to tax.

If you misplaced or didn't receive the form for previous tax year, you can get an instant replacement form. You can get the forms with your personal my Social Security account. If you don't have an account, you can create one at www.ssa.gov/myaccount.

If you do have to pay taxes on your Social Security benefits, you can choose to have federal taxes withheld from your benefits to avoid or reduce owing tax in the future.

Source:
https://www.ssa.gov/benefits/retirement/planner/taxes.html