"2024 Social Security Tax Changes: Higher Rates for High Earners and Impact on Taxpayers"

Social Security benefits are subject to income tax, with the amount owed depending on your "combined income," which includes your adjusted gross income, nontaxable interest, and half of your Social Security benefits. Up to 85% of benefits may be taxable for individuals with a combined income over $34,000 or couples over $44,000. Up to 50% may be taxable for individuals with combined incomes between $25,000 and $34,000 or couples between $32,000 and $44,000. The SSA-1099 form, sent by the Social Security Administration, assists in determining the taxable amount when filing federal tax returns.