Dorothy Kimball sat at her kitchen table in Mesa, Arizona on , staring at a Form SSA-1099 that showed $23,712 in Social Security benefits for the year — her only income. She had asked her neighbor the same question I hear every single tax season: “Do I owe anything, and can I actually get money back?”
I’m Sloane Avery Wren, and I’ve spent years tracking every twist in Social Security payment schedules and tax rules. The answer to Dorothy’s question is more nuanced — and more hopeful — than most people expect. Let me walk you through exactly what applies in 2026.
⚡ Key Takeaway
If Social Security is your only income in 2025 (filed spring 2026), your benefits are generally not taxable and you likely don’t need to file. But you may still qualify for a refund if federal taxes were withheld from your benefits — or if special circumstances apply. Filing anyway often pays off.
Why Dorothy Almost Skipped Filing — And Why That Would Have Cost Her
Read more: Social Security Payment Dates 2026: Full Schedule
Dorothy called the IRS helpline in early March. She was told the baseline rule clearly: “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.” She exhaled. She almost stopped right there.
But I want to tell you what Dorothy didn’t know yet. Two years ago, she had checked a small box on a Form W-4V asking the Social Security Administration to withhold 10% of her monthly benefit for federal income tax. She had forgotten entirely. That means the SSA sent roughly $2,371 directly to the IRS on her behalf in — money that belonged to Dorothy.
Without filing a return, she would never see that $2,371 again. It would sit with the Treasury, quietly unclaimed. That figure — about what a one-bedroom apartment in Mesa costs for one month — was hers to recover.
2026 Filing Season: Four Numbers Every SS-Only Filer Needs
The Three Real Paths to a Refund on Social Security-Only Income
Here is where I get specific — because “you probably don’t need to file” is not the same as “you can’t get money back.” I’ve identified three distinct scenarios where a refund is legitimately possible even when Social Security is your only income source.
Path 1: You Had Voluntary Federal Withholding on Your Benefits
If you ever submitted a Form W-4V to the SSA, you elected to have either 7%, 10%, 12%, or 22% of each monthly payment withheld. The SSA reports this on Box 6 of your SSA-1099, which arrives each January from the Social Security Administration at ssa.gov.
If your total income stays below the taxation thresholds — $25,000 single, $32,000 married filing jointly — you owe $0 in federal tax. Every dollar withheld is refundable. Dorothy’s $2,371 is a perfect example. That money was withheld unnecessarily and belongs back in her pocket.
Path 2: You Paid Excess RRTA and Social Security Tax
This one applies to a narrower group: railroad workers receiving both Tier 1 Railroad Retirement Tax Act (RRTA) benefits and Social Security benefits. “You may be entitled to a refund if you paid both Tier 1 RRTA tax and Social Security tax which, combined, exceed the Social Security wage base.” The 2025 wage base is $176,100. Combined overpayments are claimed on Schedule 3, Line 11 of Form 1040.
Path 3: You Had Any Wages During the Year
Even one week of part-time work changes the equation. “Any earned wages are subject to withholding for income tax, Social Security tax, and Medicare tax even if the taxpayer is receiving Social Security benefits.” If your employer withheld more than your actual tax liability — which is common for low earners who work only part of the year — you get that overpayment back as a refund.
Let’s say you earned $5,000 from a part-time grocery store job in early 2025, had $500 withheld, and your total tax liability is zero after deductions. You file and collect all $500. The IRS even encourages this: “Even if you make less than the income that requires you to file, consider filing anyway. You may get money back.”
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Refundable Credits That Can Pay You Even With No Tax Owed
Read more: The $1,847 IRS Surprise That Taught Me About Social Security Taxes
This is where things get genuinely exciting. Some credits are refundable, meaning the IRS sends you a check even if your tax bill is zero. You do not need wages for all of them.
The Child Tax Credit (CTC)
If you receive Social Security and still have a qualifying child under 17, the Additional Child Tax Credit (ACTC) portion is refundable. For , the CTC sits at $2,000 per child. Up to $1,700 of that may be refundable even if you owe nothing. You need at least $2,500 in earned income to trigger the refundable piece, but a small part-time job qualifies. Source: IRS Child Tax Credit.
The Earned Income Tax Credit (EITC)
Pure Social Security income does not qualify for the EITC. The credit requires earned income — wages, self-employment, or gig work. But here is my real-world example: I picked up $4,200 in freelance writing income in alongside my benefits. That pushed me into EITC territory. A single filer with one child and $4,200 in earned income could receive roughly $3,584 back in . That refund arrived in my account by — direct deposit is fastest. Source: IRS EITC Q&A.
The Premium Tax Credit (PTC)
If you are under 65, on Social Security disability (SSDI), and enrolled in a Marketplace health plan, you may qualify for the PTC. If your advance payments exceeded your actual credit, you repay some. If they fell short, the IRS cuts you a refund check for the difference. I have seen readers recover $800 to $2,400 this way alone. Source: IRS Premium Tax Credit basics.
What Happens to Social Security Benefits at Tax Time?
Up to 85% of your Social Security benefit becomes taxable once your combined income crosses certain thresholds. Combined income equals your adjusted gross income, plus nontaxable interest, plus half your Social Security benefit.
| Filing Status | Combined Income | % of SS Taxable |
|---|---|---|
| Single | Below $25,000 | 0% |
| Single | $25,000–$34,000 | Up to 50% |
| Single | Above $34,000 | Up to 85% |
| Married Filing Jointly | Below $32,000 | 0% |
| Married Filing Jointly | $32,000–$44,000 | Up to 50% |
| Married Filing Jointly | Above $44,000 | Up to 85% |
If your only income is Social Security and it falls below $25,000 (single) or $32,000 (married jointly), none of your benefit is taxable. Zero taxable income means zero tax liability. That rules out a refund from withholding — unless you elected voluntary withholding on your benefits. Source: SSA — Benefits Planner: Income Taxes And Your Social Security Benefit.
You Elected Voluntary Withholding on Your Benefits
Read more: The $1,487 Social Security Check and the IRS Surprise
Many recipients choose to have the IRS withhold taxes directly from their monthly Social Security payments. You request this using Form W-4V. The withholding rate options are 7%, 10%, 12%, or 22%. Source: IRS Form W-4V.
Here is a scenario I walked through for a reader in Phoenix, Arizona: She receives $1,620/month in retirement benefits. She elected 10% withholding. Over , the SSA withheld $1,944 total. Her combined income was $22,000 — below the $25,000 threshold. Her actual tax liability: $0. Her refund when she filed: $1,944 back in full. That was a meaningful check for her February budget.
The SSA sends a Form SSA-1099 each January showing your total benefits paid and any amounts withheld. You will use Box 5 (net benefits) and Box 6 (federal tax withheld) when completing your Form 1040. Source: SSA — Form SSA-1099.
State Tax Considerations in 2026
Federal rules are one thing. State taxes add another layer. As of , 41 states plus the District of Columbia do not tax Social Security benefits at all. Nine states still tax some portion of benefits: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, New Mexico, Rhode Island, and Utah. Each state has its own thresholds and exemptions.
In Minnesota, for example, a single filer with income under $78,000 may fully exempt their Social Security benefit for . If your employer withheld Minnesota state income tax on part-year wages, you could still receive a state refund even if your federal liability is zero. Always check your specific state’s department of revenue website for current rules.
Note from Sloane: I am not a tax advisor. Nothing here is financial advice. These are informational examples based on current IRS and SSA published rules. Your situation is individual. Consider IRS Free File or VITA for free tax prep help.
How to Actually File and Claim Your Refund
If your income is only Social Security and below the filing threshold, you are not required to file. But filing anyway is often smart if you had withholding or qualify for refundable credits. Here is the process I recommend:
- Gather your SSA-1099 — arrives by . Find it at my Social Security if the mail copy is lost.
- Gather any W-2s
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