Core Insights - The government imposes taxes on Social Security benefits, which may seem counterintuitive to those who have contributed to Social Security through payroll taxes for years [1] Taxation Criteria - To determine tax liability on Social Security benefits, one must calculate "combined" or "provisional" income, which includes adjusted gross income (AGI), tax-exempt interest, and half of Social Security benefits [3] Tax Filing Status and Income Thresholds - Taxation on Social Security benefits varies based on filing status and income levels: - Single/Head of household: - Less than $25,000: Not taxed - $25,000 to $34,000: Up to 50% of benefits taxed - More than $34,000: Up to 85% of benefits taxed - Couple filing jointly: - Less than $32,000: Not taxed - $32,000 to $44,000: Up to 50% of benefits taxed - More than $44,000: Up to 85% of benefits taxed [4] Withholding Taxes - Retirees can request the IRS to withhold taxes from their Social Security benefits, and if excess taxes are withheld, a refund will be issued [5] Tax Rates - If federal taxes are owed on Social Security benefits, they will be taxed at the ordinary tax rate [6] State Taxes - Certain states may impose state taxes on Social Security benefits, depending on age and income. States that may tax benefits include Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont [8][9]