Can Social Security Recipients Claim Tax Refunds? What You Need To Know About Getting Social Security Tax Back

When tax season rolls around, many people hope for a refund. For those relying on Social Security income, however, the reality is often disappointing. According to tax professional Mark J. Kohler, an attorney and CPA with KKOS Attorneys, whether you’ll get Social Security tax back depends largely on your overall income picture and employment status.

The Reality for Social Security-Only Recipients

If Social Security represents your sole income source, getting a tax refund becomes virtually impossible. The average Social Security benefit in 2025 amounts to approximately $1,976 monthly—roughly $23,712 annually—which falls significantly below the poverty threshold and typically doesn’t generate tax liability in the first place.

Kohler explains the fundamental issue: “When Social Security is your primary or only income stream, you’re already at such a low income level that no taxes are owed, let alone withheld for a potential refund.” The tax system simply doesn’t create the conditions necessary for a refund under these circumstances.

This reflects a broader concern in retirement planning. Rather than serving as the foundation of financial security, Social Security often becomes people’s complete retirement income—a situation far from ideal for building wealth or claiming tax refunds.

Building Refund Potential Through Multiple Income Streams

The landscape shifts dramatically once you introduce additional income sources alongside Social Security benefits. Employment earnings, freelance work, or business income create opportunities to do you get social security tax back through strategic tax planning.

When you maintain employment while collecting Social Security, refunds become achievable through several mechanisms:

Excessive Withholding Management: Employers sometimes withhold more than necessary from paychecks. If your overall tax liability proves lower than what was withheld, you’ll receive a refund.

Strategic Tax Reduction: Employing legitimate tax strategies to lower your adjusted gross income can trigger refund situations. Kohler notes that “utilizing tax strategies that reduce your adjusted gross income, combined with Social Security earnings, positions you to receive a refund because the tax reduction creates that outcome.”

Tax Strategies That Create Refund Opportunities

Several avenues exist for reducing taxable income and improving your refund prospects:

Traditional Employment Deductions: Employees can pursue tax credits and deductions including solar installations, electric vehicle purchases, and contributions to 401(k) plans, IRAs, and health savings accounts—all reducing pre-tax income.

Additional Deductible Expenses: The IRS recognizes deductions for alimony, student loan interest, casualty losses, and charitable donations.

Self-Employment Advantages: Those with side businesses or freelance work can deduct ordinary and necessary business expenses, from supplies to home office usage and vehicle costs.

The Bottom Line: Personalized Planning Matters

Whether you ultimately receive a tax refund when taking Social Security benefits hinges on your complete financial situation rather than the benefits themselves. The tax treatment of Social Security proves irrelevant if you’ve implemented effective income-reduction strategies through employment or other means.

Rather than relying on assumptions, consulting with a CPA or financial advisor ensures you understand your specific circumstances and implement appropriate tax strategies tailored to your unique situation.