Some people have to pay federal income taxes on their Social Security benefits. This usually happens if you have other substantial income (such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return) in addition to your benefits. DO NOT count the benefits you receive on behalf of another person (example: children) on your tax return.

No one pays federal income tax on more than 85 percent of his or her Social Security benefits based on Internal Revenue Service (IRS) rules.

• If you file a federal tax return as an "individual" and your combined income is between $25,000 and $34,000, you may have to pay income tax on 50 percent of your benefits.
• more than $34,000, up to 85 percent of your benefits may be taxable.

• If you file a joint return, and you and your spouse have a combined income that is between $32,000 and $44,000, you may have to pay income tax on 50 percent of your benefits
• more than $44,000, up to 85 percent of your benefits may be taxable.

• If you are married and file a separate tax return, you probably will pay taxes on your benefits.

How to figure your combined income

Your adjusted gross income
+ Nontaxable interest
+ ½ of your Social Security benefits
= Your "combined income"

What is your tax rate if you are a non-U.S. citizen? 

If you are not a U.S. citizen or resident, Social Security withholds federal income taxes from your benefits. The tax is 30 percent of 85 percent of your benefit (an effective tax rate of 25.5 percent).

They withhold this tax rate from the benefits of all nonresident aliens, unless you live in a country with which the United States has a tax treaty. Tax treaties do not permit taxing of U.S. Social Security benefits (or provide for a lower tax rate).

With what countries does the U.S. have tax treaties?

The United States has tax treaties with Canada, Egypt, Germany, Ireland, Israel, Italy, Japan, Romania, Switzerland, and the United Kingdom (defined as England, Scotland, Wales, and Northern Ireland). In addition, if you live in and are a citizen of India, your Social Security benefits are exempt from Federal taxes to the extent that your benefits are based on Federal, State or local government employment. (This list can change from time to time.)

How do you know the amount of taxes withheld from your benefits?

At the end of each year, Social Security will send a Form 1042S (Social Security Benefit Statement) to each beneficiary. This statement shows the amount of taxes withheld from your Social Security benefits.

Can you replace an SSA-1099/1042S for Tax Information

You can request a copy of your most recent SSA-1099 or SSA-1042S from Social Security at https://secure.ssa.gov/apps6z/i1099/main.html

An SSA-1099 is mailed to you in January showing the total amount of benefits you received in the previous year. If you are a nonresident alien who received or repaid Social Security benefits last year, you will receive an SSA-1042S instead.

• If you need a replacement SSA-1099 or SSA-1042S for an earlier tax year, contact Social Security. A copy of your SSA-1099/1042S will arrive in the mail in about 10 days (30 days if you live outside the United States).  If you need it sooner, contact your local Social Security Office

• The SSA-1099/1042S will be mailed to the address on file at Social Security.

• If you have moved, you must report your change of address to Social Security before they can  process your request.

• If you recently reported a change of address to Social Security, you need to contact Social Security to make your request.

For more information on taxation of Social Security Benefits, or to order the publication "Tax information for Older Americans" (Publication #554), call the IRS at 800-829-3676 or visit the IRS Web site.