American citizens file an income tax return every year, and many of them who paid taxes also have their tax returns. But if your income is only coming from social security benefits, are you also eligible to get a tax return? This thought comes to mind who are disabled, old age, retired, and seniors who are no longer working.
In this article, we will tell you how Social Security is taxed, under what circumstances you can get a refund, and what precautions you should take.
First, understand – what is a tax refund?
The tax you pay during the year through employment or self-employment or advance tax installments might lead to excess payments than necessary.
The Internal Revenue Service sends back surplus tax deposits paid by individuals whose actual tax obligations turn out to be lower than their total deposits – this process results in a tax refund.
Is Social Security income taxable?
Yes, but not for everyone.
Social Security benefits may be taxable, but it depends on your total income. If your income exceeds a certain limit (Social Security + other income), it may be taxable.
Main types of Social Security:
- Retirement Benefits – for older adults
- Disability Benefits (SSDI) – for those who cannot work due to a disability
- Survivor Benefits – for the family of a deceased worker
- Supplemental Security Income (SSI) – for those with very low incomes (it is not taxable)
How does Social Security become taxable?
The IRS calculates a “combined income”:
Combined Income = Your other income + (50% of Social Security benefits)
If these incomes exceed certain thresholds, Social Security becomes taxable:
| Filing Status | Taxable Income Threshold |
|---|---|
| Single or Head of Household | More than $25,000 |
| Married Filing Jointly | More than $32,000 |
| Married Filing Separately (living with spouse) | $0 |
If your income is below these thresholds, your Social Security is completely tax-free.
Is Social Security taxed in Texas?
No. Texas is a state that does not levy a state income tax. That means if you live in Texas, your Social Security income will not be taxed at the state level.
However, it may be taxed at the federal level if your total income exceeds a certain threshold.
How do you get a tax refund if your income is only from Social Security?
If you have only Social Security income, and you have not made any other tax payments (such as withholding, advance payments, etc.), you usually do not get a tax refund. But in certain cases, you may still be eligible for a refund:
1. If you had taxes deducted from your Social Security:
The IRS permits taxpayers to direct monthly Social Security payments to withhold specific percentages, including 7%, 10%, 12%, and 22%, during the year. Your year ends with a lower tax liability,y which would generate a refund from the IRS.
2. If you claimed a refundable tax credit:
Some tax credits can become part of the refund, such as:
- Earned Income Tax Credit (EITC) – For working people, Social Security is the only one excluded.
- Child Tax Credit (CTC) – Up to $2,000 per child in 2025, and up to $1,900 refundable.
- Students with satisfactory attendance who receive American Opportunity Tax Credit (AOTC) are eligible to receive up to $1,000 from the available maximum of $2,500 tax credits.
- Through the Health Insurance Marketplace, all purchasers of health insurance plans become eligible to receive Premium Tax Credit benefits.
Tax slabs and deductions for 2025
| Tax Rate | Income Range (2025) |
|---|---|
| 10% | Up to $11,600 |
| 12% | $11,601 to $47,150 |
| 22% | $47,151 to $100,525 |
| Above this | 24%, 32%, 35%, 37% |
Standard Deduction (2025):
- Single: $14,600
- Married Filing Jointly: $29,200
- Head of Household: $21,900
The tax deductions allow you to decrease your total tax obligations, which qualify you for refund benefits.
Why is it important to get advice?
If you rely solely on Social Security and still file a tax return, it’s a good idea to consult a tax professional or lawyer. Firms like Kraft & Associates help with these kinds of cases. And their fees are only charged if your refund claim is successful.
Some important things to keep in mind:
Social Security is most likely taxable if you are married, filing separately, and live with your spouse.
SSI (Supplemental Security Income) is completely tax-free.
If you don’t have any other income (like a job or investments), you usually don’t even need to file a tax return — but it may still be in your favor to file.
Sometimes the IRS will set up a refundable credit for you that can be deposited directly into your bank account — this requires filing a return.
Conclusion
If all of your income comes from Social Security benefits, you usually won’t get a tax refund — unless you already had your taxes deducted or are eligible for a refundable credit. In states like Texas, there’s no state tax at all. But there may be a federal tax if you have other income.
A lot depends on your tax situation, so it’s a good idea to consult a tax professional or attorney so you don’t miss out on a potential tax refund.
FAQs
Q1. Can I get a tax refund if I only receive Social Security benefits?
A1. Yes, if you had tax withheld from your benefits or qualify for a refundable credit.
Q2. Is Social Security taxed in Texas?
A2. No, Texas does not have a state income tax, so Social Security is not taxed at the state level.
Q3. What is the maximum Social Security retirement benefit in 2025?
A3. Around $4,873 per month if you retire at age 70.
Q4. Are Supplemental Security Income (SSI) benefits taxable?
A4. No, SSI is not taxable at any level.
Q5. Can I choose to withhold federal taxes from my Social Security check?
A5. Yes, you can choose to withhold 7%, 10%, 12%, or 22% of your monthly benefit.
