Yes, you can get a tax refund while receiving Social Security

Whether you receive a refund depends on how much income you have and how much tax was withheld from your payments—not on the fact that you receive Social Security itself. The IRS treats Social Security benefits as taxable income only if your total income exceeds certain thresholds. If you fall below those thresholds, or if you had taxes withheld from your benefits and your actual tax bill is lower than what was taken out, you can receive a refund.

The key is understanding your "combined income," which includes your Social Security benefits plus other income like wages, pensions, or interest. Once you know that number, you can determine whether you owe tax and whether you're due a refund.

Key Takeaways

  • Social Security benefits become taxable only if your combined income (benefits plus other income) exceeds $25,000 for single filers or $32,000 for married couples filing jointly.
  • If you had federal income tax withheld from your Social Security checks, you may receive a refund even if you owe no tax.
  • You must file a tax return to claim a refund—the IRS will not send one automatically.
  • Form SSA-1099 shows how much you received in benefits; you'll need this to file your return.

How the combined income threshold works

The IRS uses a specific calculation to determine whether your Social Security is taxable. Add one-half of your Social Security benefits to all your other income (wages, pensions, interest, dividends, rental income). If that total exceeds $25,000 for single filers, $32,000 for married couples filing jointly, or $0 for married couples filing separately, then up to 85 percent of your benefits may be taxable.

For example: if you're single, received $18,000 in Social Security, and earned $10,000 in part-time wages, your combined income is $10,000 plus half of $18,000 ($9,000), which equals $19,000. You're below the $25,000 threshold, so none of your Social Security is taxable. If you had tax withheld from your benefits, you would receive a refund.

If your combined income exceeds the threshold, the calculation becomes more complex. The IRS has a worksheet in the instructions for Form 1040 that walks through it, but a tax preparer can do this quickly if you're unsure.

When you get a refund even if you owe no tax

Many people on Social Security choose to have federal income tax withheld from their monthly payments. You can request this using Form W-4V, which you submit to the Social Security Administration. If you request withholding, Social Security will hold back 7, 10, 12, or 22 percent of your monthly benefit.

If you have withholding taken out but your actual tax liability is zero or lower than what was withheld, the IRS will refund the difference. This is one of the most common reasons Social Security recipients receive refunds—they had tax withheld as a precaution, but their income turned out to be low enough that they owed nothing.

To receive this refund, you must file a tax return. The IRS does not automatically send refunds to people who don't file.

Filing your return as a Social Security recipient

You'll need your Social Security statement (Form SSA-1099), which Social Security mails to you by January 31 each year. This form shows how much you received in benefits during the tax year. You'll also need documentation of any other income: W-2s from employers, 1099s from banks or investment accounts, or statements from pensions.

If your only income is Social Security and it's below the threshold, you may not be required to file. However, you should file anyway if you had tax withheld, because filing is the only way to claim your refund. The IRS will not initiate a refund for you.

You can file on your own using tax software, work with a tax preparer, or use the IRS Free File program if your income is below a certain level (the income limit changes yearly, but it's typically around $60,000 to $70,000). AARP also offers free tax preparation for people over 60 through their Tax-Aide program.

What happens if you don't file but are due a refund

If you're may have access to to a refund but don't file, you lose it. There is no time limit on claiming a refund—you can file a return for a prior year and still receive the refund—but the longer you wait, the longer you go without that money. The IRS will not contact you to tell you that you're due a refund.

If you're unsure whether you owe tax or are due a refund, filing a return costs nothing if you use Free File or a free preparation service. The cost of not filing could be hundreds of dollars in unclaimed refunds.

Other income that affects your refund

Social Security is not your only source of income for most people. If you work part-time, receive a pension, have interest or dividends from savings or investments, or receive rental income, all of that counts toward your combined income and affects whether your Social Security is taxable.

Part-time work is common among Social Security recipients. If you earned wages, your employer should have issued a W-2, which you'll include on your tax return. The same applies to any 1099 income from self-employment or contract work. All of this income, combined with half your Social Security benefits, determines whether you cross the threshold.

Frequently Asked Questions

Do I have to file a tax return if I only receive Social Security?

Not necessarily. If your combined income is below the threshold and you had no tax withheld, you're not required to file. However, if you had federal income tax withheld from your benefits, you should file to claim your refund—the IRS will not send it without a return.

What if I receive both Social Security and a pension?

Both count toward your combined income. Add half your Social Security benefits to your pension and any other income. If the total exceeds the threshold, some of your Social Security becomes taxable. You'll report both on your tax return.

Can I request tax withholding from my Social Security if I think I'll owe?

Yes. Use Form W-4V to request withholding of 7, 10, 12, or 22 percent of your monthly benefit. You can change or stop withholding at any time by submitting a new form to Social Security. This is a way to avoid owing a large amount at tax time.

What if I made a mistake on a prior year's return?

You can file an amended return using Form 1040-X for any of the past three years. If the amendment results in a larger refund, the IRS will send it to you. Mail the amended return to the address shown in the Form 1040-X instructions.

Where do I get Form SSA-1099?

Social Security mails it to you automatically by January 31 each year. If you don't receive it, you can create an account at ssa.gov and view or print it online, or call Social Security at 1-800-772-1213 to request a copy.