Must I pay Social Security taxes on my earnings after full retirement age? (2024)

FAQs

Must I pay Social Security taxes on my earnings after full retirement age? ›

Everyone must pay applicable Social Security taxes on income, even those working past full retirement age. On the plus side, working past full retirement age may also increase Social Security benefits in the future because you continue contributing to Social Security through the payroll tax.

Note that California does not currently tax Social Security benefits, although 13 other states do. For more information, see Income Taxes and Your Social Security Benefits.

You aren't required to pay this tax on any income beyond the Social Security wage base limit. Employees and employers are each required to pay a 6.2% tax on wages. In 2025, the limit is estimated to go up to $174,900, which has consistently increased from $168,600 in 2024 and $160,200 in 2023.

While you may have heard at some point that Social Security is no longer taxable after 70 or some other age, this isn't the case. In reality, Social Security is taxed at any age if your income exceeds a certain level.

About 40% of people who get Social Security must pay federal income taxes on their benefits. This usually happens if you have other substantial income in addition to your benefits.

How much can you earn and still get benefits? later, then your full retirement age for retirement insurance benefits is 67. If you work, and are at full retirement age or older, you may keep all of your benefits, no matter how much you earn.

A few groups are exempt from paying taxes into the Social Security system. Most foreign academics and researchers are exempt if they're nonimmigrant and nonresident aliens. Self-employed workers who make less than $400 annually don't have to pay Social Security taxes, either.

The Bottom Line. When do you stop paying Social Security tax? The answer is almost always "never" as long as you're employed but there are exceptions. Consider consulting with a tax professional if you think any of these situations or exceptions might apply to you.

Generally, for combined incomes between $25,000 and $34,000 ($32,000 and $44,000 for joint filers), up to 50% of your Social Security benefits may be taxed as ordinary income, and if your combined income exceeds those thresholds, up to 85% is taxable.

Social Security tax is calculated as a percentage of gross earnings. Every year, the government sets a limit on the amount of your earnings that can be taxed for Social Security. That limit in 2024 is $168,600, up from $160,200 in 2023.

At what age do seniors stop paying federal taxes? ›

At What Age Can You Stop Filing Taxes? Taxes aren't determined by age, so you will never age out of paying taxes.

Basically, if you're 65 or older, you have to file a return for tax year 2023 (which is due in 2024) if your gross income is $15,700 or higher. If you're married filing jointly and both 65 or older, that amount is $30,700. If you're married filing jointly and only one of you is 65 or older, that amount is $29,200.

If Social Security is your sole source of income, then you don't need to file a tax return. However, if you have other income, you may be required to file a tax return depending on the amount of other income.

As long as you continue to work, even if you are receiving benefits, you will continue to pay Social Security taxes on your earnings. However, we will check your record every year to see whether the additional earnings you had will increase your monthly benefit.

For example, life insurance proceeds, long-term care insurance payments, disability benefits, muni bond interest, and alimony and child support are generally not taxable. Additionally, earned income in states with no income tax isn't subject to tax at the state level.

Generally, if Social Security benefits were your only income, your benefits are not taxable and you probably do not need to file a federal income tax return.

Are Social Security benefits taxable regardless of age? Yes. The rules for taxing benefits do not change as a person gets older. Whether or not your Social Security payments are taxed is determined by your income level — specifically, what the Internal Revenue Service calls your “provisional income.”

Single filers with a combined income of $25,000 to $34,000 must pay income taxes on up to 50% of their Social Security benefits. If your combined income is more than $34,000, you will pay taxes on up to 85% of your Social Security benefits. Do you need help figuring out your required minimum distributions?

Generally, if Social Security benefits were your only income, your benefits are not taxable and you probably do not need to file a federal income tax return.

Taxes aren't determined by age, so you will never age out of paying taxes. Basically, if you're 65 or older, you have to file a tax return in 2022 if your gross income is $14,700 or higher. If you're married filing jointly and both 65 or older, that amount is $28,700.