Social Security Retirement Benefits

Social security benefits include: retirement, survivors, disability, and supplemental security income (SSI). Except for SSI, the other benefits mentioned are taxable.


Let’s delve into retirement benefits.


Social security retirement benefits are available to individuals who have worked and paid social security taxes to earn credits toward the retirement benefit. The number of credits needed to qualify for benefits depend on your year of birth and lifetime earnings. You can begin to receive social security benefits at the age of 62, which is considered early retirement and results in a reduced benefit amount. Full retirement age is 67 if you were born in 1960 or later and the benefit amount is higher, all other things being equal ®.


Up to 85% of social security retirement benefits may be includable in gross income on your tax return, which means it may be taxable. The amount of taxable income depends on the filing status on your tax return, total amount of benefits received, and other income earned. This is important to those who continue to work while receiving social security retirement benefits and/or receive other taxable income.


The calculation to determine the percentage of benefits to include in gross income is a multi-step process. Generally, if your income, including tax exempt interest + 1/2 of net social security benefits exceed the base amount shown the table below, a portion of the benefits are included in gross income. Social security benefits are reported and sent to the taxpayer on Form SSA-1099, Social Security Benefit Statement, in January for benefits received in the prior year.

Maximum Percentage of Social Security Benefits Included in Gross Income

Social Security Base Amounts.png

Take Action:

  • Check in with your tax preparer to estimate the amount of benefits that may be taxable. If a portion of your benefits are taxable, then,

  • Choose to have federal taxes withheld from your benefits by completing Form W-4V, Voluntary Withholding Request. Return the completed and signed form to your local Social Security office by mail or in person. When completing the form, you can select a percent - 7, 10, 12 or 22 percent - to be withheld, not a flat dollar amount.

  • Check out the retirement calculator, FAQs, and other resources on the Social Security Administration’s official website. 

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