At what age is Social Security no longer taxed?

Introduction

While you may have heard at some point that Social Security is no longer taxable after 70 or some other age, this isn’t the case. In reality, Social Security is taxed at any age if your income exceeds a certain level.

At what age is Social Security not taxable?

Social Security can potentially be subject to tax regardless of your age. While you may have heard at some point that Social Security is no longer taxable after 70 or some other age, this isn’t the case. In reality, Social Security is taxed at any age if your income exceeds a certain level. 

Essentially, if your taxable income is greater than the Standard Deduction for your filing status, you’ll typically have to file a tax return. This means that seniors on Social Security whose income exceeds the Standard Deduction will need to determine if some of their Social Security benefits need to be included in their taxable income for federal taxes as well as for taxes in certain states. 

When do seniors have to file a tax return?

For tax year 2023, seniors filing as single or married filing separately will usually need to file a return if :

• You are at least 65 years of age, and
• Your gross income for tax is $15,700 or more

However, if your only income is from Social Security benefits and the amount that you receive is less than $50,000 per year, you don’t typically include these benefits in your gross income.  In this case, if this is the only income you receive, then your gross income for taxes equals zero, and you usually don’t need to file a federal income tax return.

But if you do earn other income including certain tax-exempt income, then each year you need to determine whether the total exceeds the filing threshold.

• For tax years prior to the 2018 tax year (filed in or before 2019), these amounts are based on the year’s Standard Deduction plus the exemption amount for your age and filing status.
• Beginning in 2018, only your Standard Deduction is used since exemptions are no longer part of calculating your taxable income under the new tax law passed in late 2017.

For the 2023 tax year,

• If you are married and file a joint return with a spouse who’s also 65 or older, you’ll need to file a return if your combined adjusted gross income is $30,700 or more.
• If your spouse is under 65 years old, then the threshold amount decreases to $29,200.
• Keep in mind that these income thresholds only apply to the 2023 tax year, and generally increase slightly each year.