Are Spousal Social Security Benefits Taxable? (2024)

FAQs

Are Spousal Social Security Benefits Taxable? ›

Spousal Social Security benefits may be subject to federal income tax, depending on your household income.

Up to 85% of a taxpayer's benefits may be taxable if they are: Filing single, head of household or qualifying widow or widower with more than $34,000 income. Married filing jointly with more than $44,000 income. Married filing separately and lived apart from their spouse for all of 2021 with more than $34,000 income.

You must pay taxes on up to 85% of your Social Security benefits if you file a: Federal tax return as an “individual” and your “combined income” exceeds $25,000. Joint return, and you and your spouse have “combined income” of more than $32,000.

California and the federal government have different tax laws about spousal support (also known as alimony). For California income taxes, the person paying support can deduct the payments. The person receiving support must report the payments as income.

The level of federal tax applied to survivor benefits is influenced by the beneficiary's income level and filing status. Depending on those variables, as much as 50% or 85% of the survivor benefits may be considered taxable income.

The first exception, which can be deemed as the Social Security spousal benefits loophole, works where an individual who remarries at 60 or later may still be entitled to Social Security survivors' benefits if the second marriage ends before the death of the first spouse.

Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.

There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.

Deemed filing means that when you file for either your retirement or your spouse's benefit, you are required or “deemed” to file for the other benefit as well. The Bipartisan Budget Act extends deemed filing rules to apply at full retirement age and beyond.

Is Social Security considered earned income? ›

Unearned Income is all income that is not earned such as Social Security benefits, pensions, State disability payments, unemployment benefits, interest income, dividends, and cash from friends and relatives. In-Kind Income is food, shelter, or both that you get for free or for less than its fair market value.

Key Takeaways. Social Security survivor benefits paid to children are taxable for the child, although most children don't make enough to be taxed. If survivor benefits are the child's only taxable income, they are not taxable. If half the child's benefits plus other income is $25,000 or more, the benefits are taxable.

Some Americans might be exempt from filing income taxes because they don't meet the income requirements to file, or they're being claimed as a dependent.

The short version: Spousal benefits are available to retired workers' spouses or ex-spouses. They pay up to 50% of a worker's monthly retirement or disability benefit. Survivor benefits are paid to a surviving spouse or surviving ex-spouse when a Social Security beneficiary dies.

Surviving spouse, full retirement age or older — 100% of the deceased worker's benefit amount. Surviving spouse, age 60 — through full retirement age — 71½ to 99% of the deceased worker's basic amount. Surviving spouse with a disability aged 50 through 59 — 71½%.

Bottom Line. Yes, Social Security is taxed federally after the age of 70. If you get a Social Security check, it will always be part of your taxable income, regardless of your age.

You report the taxable portion of your social security benefits on line 6b of Form 1040 or Form 1040-SR. Your benefits may be taxable if the total of (1) one-half of your benefits, plus (2) all of your other income, including tax-exempt interest, is greater than the base amount for your filing status.

Key Takeaways. The maximum spousal benefit is 50% of the other spouse's full benefit. You may be eligible if you're married, divorced, or widowed. You can collect spousal benefits as early as age 62, but in most cases, the benefits are permanently reduced if you start collecting before your full retirement age.

For a spouse who is not entitled to benefits on his or her own earnings record, this reduction factor is applied to the base spousal benefit, which is 50 percent of the worker's primary insurance amount.