Children under 18 who work for their parents in a family-owned business also do not have to pay Social Security taxes. Likewise, people under 21 who work as housekeepers, babysitters, gardeners or perform similar domestic work are exempt from this tax.
To claim the exemption, you must file IRS Form 4029 ( Application for Exemption From Social Security Taxes and Waiver of Benefits ) with the IRS.
Pension payments, annuities, and the interest or dividends from your savings and investments are not earnings for Social Security purposes. You may need to pay income tax, but you do not pay Social Security taxes.
But despite these areas of confusion, keep in mind this one key rule: the taxability of your Social Security benefits depends on your income, not your age. Whether you're 62 or 82, the same rules apply. If Social Security is your only income, you're unlikely to be taxed on those benefits.
At what age is Social Security no longer taxable? Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.
Taxes aren't determined by age, so you will never age out of paying taxes. People who are 65 or older at the end of 2024 have to file a return for tax year 2024 (which is due in 2025) if their gross income is $16,550 or higher. If you're married filing jointly and both 65 or older, that amount is $32,300.
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.
Exempt Amounts for 2025
We determine the exempt amounts using procedures defined in the Social Security Act. For people attaining NRA after 2025, the annual exempt amount in 2025 is $23,400. For people attaining NRA in 2025, the annual exempt amount is $62,160.
Most people can't avoid paying Social Security taxes on their employment and self-employment income. There are, however, exemptions available to specific groups of taxpayers.
That said, there is one situation in which you can kiss taxes goodbye. If your only income is Social Security payments, you won't owe taxes and you probably won't need to file a tax return. If you're 65 or older, you might also be retired or partially retired and taking distributions from your retirement savings.
Historically, the Amish and the Mennonites have been the religious groups that have utilized this provision.
Does everyone get Social Security? No. Still, American workers who will not qualify for Social Security retirement benefits are relatively rare. It's important to know if you are one of them, so you can secure other sources of income or determine whether it's possible for you to become eligible.
Members of certain religious groups are often exempt. Most foreign academics and researchers are exempt if they're nonimmigrant and nonresident aliens. Self-employed workers who make less than $400 annually do not pay Social Security taxes.
To request an exemption from Social Security taxes, get Form 4029—Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits from the Internal Revenue Service (IRS). Then, file the form with the Social Security Administration (address is on the form).
Do Church Employees Pay Social Security Taxes? Because clergy employees are generally considered self-employed, they are responsible for FICA tax obligations. The 7.65% FICA tax and Social Security and Medicare taxes are not withheld from a minister's pay, and boxes 3, 4, 5, and 6 on their Form W-2 are left blank.
Have you heard about the Social Security $16,728 yearly bonus? There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.
It's possible – and perfectly legal – to avoid paying taxes on your Social Security check. But here's the caveat: To receive tax-free Social Security, your annual combined, or provisional, income must be under certain thresholds: $25,000, if you're filing as an individual. $32,000, if you're married filing jointly.
The types of earnings (or compensation payments) that are excluded from Social Security wages include: Tips (if they total less than $20 per month) Reimbursed business travel expenses. Employer-paid health or accident insurance premiums.
Social Security can potentially be subject to tax regardless of your age. 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.
If your spouse dies, do you get both Social Security benefits? You cannot claim your deceased spouse's benefits in addition to your own retirement benefits. Social Security only will pay one—survivor or retirement. If you qualify for both survivor and retirement benefits, you will receive whichever amount is higher.
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.
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.
Taxpayers 65 and older qualify for an additional standard deduction, reducing their taxable income. The extra deduction amount differs based on filing status and whether the taxpayer or spouse is blind. The IRS updates the deduction amounts annually for inflation, impacting tax filings.