We’re headed into another tax season and Social Security recipients who earned additional income outside of their monthly benefits check may have to pay taxes this year. Another factor that could make a beneficiary owe taxes is the COLA increase for 2024.
If your only source of income is your Social Security check, you likely won’t need to file, let alone be concerned about paying taxes, but that doesn’t mean you couldn’t benefit from filing a tax return this year anyway.
Below, we’ll break down how to find out if you’ll owe taxes for 2024 and how the COLA could affect your tax obligations.
For more, check out the Social Security payment schedule and learn more about the Social Security Fairness Act.
Can the COLA affect Social Security beneficiaries’ taxes?
Social Security beneficiaries probably won’t have to file a tax return if that’s the only income they brought in for the year. However, if you have additional income outside of your benefits, that along with the 3.20% COLA from 2024 could boost you into another tax bracket. If this happens, you’ll be taxed at a higher rate, and therefore could end up owing taxes.
The 2024 COLA increase wasn’t nearly as high as the one before it, though. In 2023 we saw an 8.7% COLA increase, on top of which the tax brackets stayed largely unchanged, which could have boosted recipients into a higher bracket more easily. The 2024 tax brackets and COLA were both adjusted minimally, making it less likely for you to be pushed into another bracket.
How much could you be taxed for your Social Security benefits?
According to the Social Security Administration, about 40% of people who receive Social Security benefits have to pay federal income tax on their benefits due to additional income sources. These additional income sources, or substantial income, include wages, self-employment earnings, interest, dividends and other taxable income.
Before you can figure out how much you’ll be taxed, you’ll first need to have your AGI (adjusted gross income) and combined income calculated.
Your AGI is your total income, minus certain deductions. Your AGI can be found in IRS form 1040 on line 11.
Combined income is determined by adding your AGI to any nontaxable interest and half of your Social Security benefits for the year.
Here’s how much you could be taxed on your Social Security benefits, based on your filing status.
Tax bracket 2024: Single filer
| Taxable income | Tax rate |
|---|---|
| $11,600 or less | 10% |
| $11,601 – $47,150 | $1,160 plus 12% of income over $11,600 |
| $47,151 – $100,525 | $5,426 plus 22% of income over $47,150 |
| $100,526 – $191,950 | $17,168.50 plus 24% of income over $100,525 |
| $191,951 – $243,725 | $39,110.50 plus 32% of income over $191,950 |
| $243,726 – $609,350 | $55,678.50 plus 35% of income over $243,725 |
| $609,351 or more | $183,647.25 plus 37% of income over $609,350 |
Tax bracket 2024: Married, filing jointly
| Taxable income | Tax rate |
|---|---|
| $23,200 or less | 10% |
| $23,201 – $94,300 | $2,320 plus 12% of income over $23,200 |
| $94,301 – $201,050 | $10,852 plus 22% of income over $94,300 |
| $201,051 – $383,900 | $34,227 plus 24% of income over $201,050 |
| $383,901 – $487,450 | $78,221 plus 32% of income over $383,900 |
| $487,451 – $731,200 | $111,357 plus 35% of income over $487,450 |
| $731,201 or more | $196,669.50 plus 37% of income over $731,200 |
Tax bracket 2024: Filing as head of household
| Taxable income | Tax rate |
|---|---|
| $16,550 or less | 10% |
| $16,551 – $63,100 | $1,655 plus 12% of income over $16,550 |
| $63,101 – $100,500 | $7,241 plus 22% of income over $63,100 |
| $100,501 – $191,950 | $15,469 plus 24% of income over $100,500 |
| $191,951 – $243,700 | $37,417 plus 32% of income over $191,150 |
| $243,701 – $609,350 | $53,977 plus 35% of income over $243,700 |
| $609,351 or more | $181,954.50 plus 37% of income over $609,350 |
For more, here’s what you can do to get a higher tax refund, and where to find your Social Security benefit statement.