Social Security income is not subject to federal taxes, but some states may impose state taxes. However, if there is additional income that exceeds a certain threshold, a portion or all of the Social Security income may be taxable. For the tax year 2022, if an individual’s combined income is between $25,000 and $34,000, or if filing jointly, the income is between $32,000 and $44,000, a portion of the Social Security income may be subject to taxation, possibly up to 50%. If an individual’s income exceeds $34,000 or the joint filer’s income is even higher, the taxable portion can increase up to 85%.
According to the definition by the Social Security Administration, “combined income” is the adjusted total income plus non-taxable interest, plus half of the Social Security income.