Dec. 25 and Dec. 26 are more than holiday dates for many retirees this year: those are the days the Social Security Administration makes your SSA‑1099 or SSA‑1042S available online (Dec. 25) and begins mailing paper copies (Dec. 26). Hold onto that form. It tells you exactly how much of your 2025 benefits the federal government considers taxable — and you’ll need it to file next spring. See the SSA’s guidance on benefit statements at ssa.gov/myaccount.
The federal rule hasn’t vanished — a key clarification
Despite headlines and campaign promises, Social Security benefits remain taxable under federal law. The familiar thresholds that determine whether up to 85% of benefits are included in taxable income are still in effect: provisional income above $25,000 for single filers and $32,000 for married joint filers can trigger taxation. For a plain-English primer from the IRS, see IRS Topic No. 703.
That said, policy changes this year do create more breathing room for some seniors. A temporary additional standard‑deduction boost — $6,000 per eligible taxpayer aged 65+ through 2028 — effectively raises the income level at which Social Security becomes taxable for some people. Put simply: the new extra deduction can reduce taxable income and, for many, shrink or eliminate federal tax on benefits.
State taxes are a mixed bag — definitions matter
Whether you owe a state tax on Social Security depends entirely on where you live. States take very different approaches: some fully exempt benefits, some tax them only above income thresholds, and a few tax most or all federally taxable benefits.
States commonly cited as taxing at least some Social Security income this year include Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont. West Virginia taxed benefits in 2025 but has a scheduled change that will eliminate taxation in 2026. Because states use different formulas and income cutoffs — and because some offer partial subtractions or age‑based exemptions — simple counts ("eight states tax" vs. "nine states tax") can vary depending on how a reporter defines "tax Social Security." Check your state instructions when you file.
Examples of how states differ:- Colorado and Connecticut allow large subtractions or full exemptions for many retirees, especially those 65 and older, but have income brackets where benefits become taxable.
- Minnesota and Montana offer exemptions or phase‑outs tied to filing status and income ranges, then begin taxing larger incomes.
- New Mexico and Rhode Island exempt Social Security for many taxpayers up to specified AGI thresholds.
- Get your SSA‑1099/1042S as soon as it’s available (online Dec. 25; mailed beginning Dec. 26). The form shows the total benefits and the taxable portion.
- Track provisional income: that calculation (half of your Social Security benefits + other taxable income + certain tax‑exempt interest) determines federal exposure.
- Consider timing withdrawals. Converting traditional IRA funds to a Roth, or taking larger distributions in years your income is unusually low, can be a way to manage how much of your benefits become taxable — but conversions themselves are taxable, so run the numbers first.
- Use tax‑advantaged accounts strategically. Qualified Roth withdrawals, and tax‑free HSA distributions for medical expenses, don’t raise provisional income the same way taxable IRA/401(k) withdrawals do.
- If you live where states tax benefits, look at state‑specific deductions and credits. Some states base exemptions on age, some on income, some on both.
- Federal provisional‑income thresholds that begin taxing benefits: $25,000 (single), $32,000 (married filing jointly).
- Maximum share of benefits that can be federally taxable: up to 85%, depending on provisional income.
- New temporary additional standard deduction for taxpayers 65 and older: $6,000 per person (through 2028). This extra deduction phases in eligibility rules and income limits; consult IRS guidance or a tax advisor to see how it applies to you.
If you live in a state that used to tax benefits and has recently changed the law (West Virginia is one), note whether the repeal applies retroactively or beginning with the next tax year; that timing affects your 2025 return.
Practical moves to reduce surprise tax bills
A few concrete steps can help you plan and avoid an unpleasant tax surprise:
Talk to a tax professional before making big moves. The interaction of federal thresholds, the new supplemental standard deduction for older taxpayers, and state rules can be tricky.
A few numbers to keep handy
When to expect the paperwork
The Social Security Administration makes forms available online first; retirees who use a my Social Security account can download and save the SSA‑1099 the moment it posts. Paper copies begin arriving in mailboxes the following day, and the SSA aims to finish mailings by the end of January. Keep that form with your tax records — the IRS expects you to report benefit amounts that can be taxed.
If you’re wondering whether any news has changed the underlying tax rules: the policy shift for seniors this year was an added deduction, not a repeal of the tax. So your 1099s and the old provisional‑income rules still matter.
If you want official guidance on SSA statements, go to the SSA’s online account page at ssa.gov/myaccount. For federal tax rules specific to Social Security benefits, the IRS resource is here: irs.gov/taxtopics/tc703.
Questions about how your state treats Social Security? Your state tax agency’s website is the authoritative source for the exact formulas, deductions, and age thresholds.
If something in your mailbox or online form doesn’t match what you expected, don’t ignore it. Small errors or missed deadlines can cost you — and in many cases, a short call to the SSA or your tax preparer clears things up fast.