What income threshold triggers taxes on Social Security in PA for 2025?

Pennsylvania doesn't tax Social Security benefits at the state level - that's one of the advantages of living here! However, you still need to worry about federal taxation. The federal government can tax up to 85% of your SS benefits if your combined income exceeds certain thresholds. For federal purposes, your "combined income" = your adjusted gross income + nontaxable interest + 1/2 of your Social Security benefits. For 2025, if you file as an individual and your combined income is: - Under $25,000: no tax on benefits - Between $25,000 and $34,000: up to 50% of benefits may be taxable - Over $34,000: up to 85% of benefits may be taxable If you're married filing jointly, the thresholds are $32,000 and $44,000 respectively.

pa doesn't tax ur ss but feds do. my brother had to pay last yr cause he worked too much. depends on total $ but not sure the exact #

I went through this EXACT situation last year! My accountant explained that PA is actually one of the 38 states that don't tax Social Security at all (thank goodness!). But the federal government definitely still does if you make too much. Your combined income calculation is: Your AGI + Nontaxable interest + Half of your SS benefits With your $19,000 job plus dividends, you're probably getting close to that first threshold ($25,000). I'd recommend calculating it precisely. And don't forget - even if you do exceed the threshold, only a PORTION of your benefits become taxable, not all of them. If you want to reduce the chance of owing taxes, consider putting some money in a traditional IRA to lower your AGI (if you're eligible).

Just wanted to say welcome to the club! I started collecting last year and was SHOCKED when I found out some of my benefits were taxable. The whole system is confusing. Good thing you're asking these questions early!

The tax situation with Social Security is RIDICULOUS!!! Why should we pay taxes on benefits WE ALREADY PAID INTO OUR WHOLE LIVES?? It's double taxation plain and simple. I've been fighting with the IRS for 3 years about this. The thresholds are WAY too low and haven't been adjusted properly for inflation. A combined income of $25,000 is NOTHING these days!!! At least PA doesn't tax our benefits, but plenty of other states do. The whole system needs an overhaul.

To give you a more precise answer about your situation: Let's say your Social Security benefit is $20,000/year: - Half of that is $10,000 - Plus your job income of $19,000 - Plus any dividends and other income If that total exceeds $25,000, some of your benefits will be taxable federally. The actual tax amount depends on your total income and tax bracket. One thing to consider is that if you're close to the threshold, reducing your work hours might not make financial sense. Remember, if you're just over the threshold, only a small portion becomes taxable - you don't suddenly lose all your benefits to taxes. I'd suggest using the IRS online tax withholding estimator or scheduling a consultation with a tax professional who specializes in retirement planning. They can run the numbers specific to your situation.

Has anyone had success getting through to the IRS helpline to ask these kinds of tax questions? I tried calling about this exact issue last year and spent HOURS on hold, then got disconnected twice! Soooo frustrating.

One more thing to note - while Pennsylvania doesn't tax Social Security benefits, your other income (the $19,000 from your job and the dividends) is still subject to PA state income tax at 3.07%. Just wanted to make sure that was clear since we're discussing multiple tax situations.

My sister lives in NY and they tax her social security! She's thinking of moving to PA just for this reason lol

Based on the numbers you shared in your replies ($23,400 in SS benefits, $19,000 from work, and $3,000 in dividends), your combined income for federal tax purposes would be approximately: $19,000 (work) + $3,000 (dividends) + $11,700 (half of SS) = $33,700 This puts you in the middle tier where up to 50% of your benefits could be taxable. However, the actual amount that's taxable involves additional calculations using IRS worksheets. I recommend either using tax software that can handle this calculation or consulting with a tax professional who understands Social Security taxation. The actual tax impact might be less than you fear.

Welcome to retirement, Miguel! You've gotten some excellent advice here. Just to add one more helpful tip - since you're turning 67 next month, make sure you understand the earnings test rules if you plan to continue working. The good news is that once you reach full retirement age (which sounds like you're approaching), there's no limit on how much you can earn from work without affecting your Social Security benefits. Also, consider making estimated quarterly tax payments if you expect to owe federal taxes on your benefits. This can help you avoid a big tax bill next April and potential underpayment penalties. Your tax preparer can help you calculate what you might owe and set up a payment schedule. Pennsylvania really is retirement-friendly when it comes to Social Security - no state tax on those benefits is a huge advantage!

Miguel, I'm in a very similar situation! Just turned 68 and went through this exact tax confusion last year. The advice you're getting here is spot-on - PA doesn't tax Social Security which is fantastic, but the federal calculation can be tricky. One thing I learned the hard way: when you're calculating that "combined income" for federal purposes, make sure you include ALL sources of income, not just the obvious ones. Things like tax-exempt interest from municipal bonds, withdrawal from Roth IRAs (the earnings portion), and even some pension income all factor in. Since you're at $33,700 combined income based on what you shared, you're definitely in the 50% taxable range, but remember - that doesn't mean you'll pay taxes on 50% of your entire benefit. The IRS uses a complex worksheet where they tax the LESSER of either 50% of your benefits OR 50% of the amount your combined income exceeds $25,000. In your case, that would be 50% of $8,700 = $4,350 of your Social Security that becomes taxable income, not 50% of your entire $23,400 benefit. Hope that helps clarify things a bit! The system is unnecessarily complicated but at least we're in a tax-friendly state for retirees.

Miguel, you've gotten some fantastic detailed advice here! I just wanted to add one practical tip that helped me when I was in a similar situation - consider having federal taxes withheld directly from your Social Security payments. You can request this by filing Form W-4V with the Social Security Administration. They can withhold 7%, 10%, 12%, or 22% of your monthly benefit for federal taxes. This might be easier than making quarterly estimated payments, and it ensures you're always current on your tax obligations. Since you're looking at having around $4,350 of your benefits become taxable (as Dylan explained so well), having some withholding might prevent any surprises come tax time. Also, don't forget that Pennsylvania has some other nice retirement perks too - like not taxing most retirement account distributions and having relatively low property taxes in many areas. You picked a good state to retire in!