Is Social Security Enough: In 2025, many retirees are wondering: Is Social Security enough to live on? And more importantly, should you still file a tax return even if Social Security is your only income? These are more than just financial questions—they’re essential decisions that could affect your quality of life, eligibility for refunds, and access to important benefits.
Even if you’re not legally required to file, doing so might put more money back in your pocket. This article breaks down why filing a tax return in 2025 could be the smart move, especially for retirees relying on Social Security.
Is Social Security Enough
| Key Insight | Details |
|---|---|
| Average Monthly Social Security (2025) | $1,929.20 (SSA.gov) |
| Average Monthly Retired Household Expenses | $4,581.25 (BLS.gov) |
| Is Filing Required for SS-Only Income? | No, but might be beneficial |
| Potential Refunds | Yes, if taxes were withheld or credits apply |
| Taxable SS Threshold | $25,000 (single), $32,000 (married) combined income |
| Filing Deadline (2025) | April 15, 2025 |
| Official IRS Filing Resource | irs.gov |
In 2025, Social Security alone often isn’t enough to meet the rising costs of retirement. While filing a tax return might seem unnecessary if your income is low, it can open the door to refunds, credits, and eligibility for other vital services.
Being proactive with your taxes is more than smart financial planning—it’s a safeguard for your well-being.
Understanding Social Security: Is It Enough in 2025?
The average monthly Social Security benefit in early 2025 is about $1,929.20, according to the Social Security Administration. While that may sound like a decent chunk of change, it’s often not enough to cover typical monthly expenses for retirees, which average around $4,581.25 according to data from the Bureau of Labor Statistics.
That leaves a gap of over $2,600 per month that needs to be filled with other income sources like retirement savings, pensions, part-time work, or tax credits.
Example:
Meet Joe, a 70-year-old retiree. He receives $1,900/month in Social Security. But his rent, food, utilities, and medical expenses add up to $4,500/month. Unless Joe has savings or additional income, he’s at a deficit.
That’s why smart tax planning is more crucial than ever.
Why Filing a Tax Return in 2025 Might Be a Smart Move
You might think, “I don’t owe taxes, so why file?” Here’s why it might still be worth filing:
1. Claim a Refund
If you had any income with tax withheld—like a pension, 401(k), or part-time job—you may be eligible for a refund.
2. Access Valuable Tax Credits
Credits like the Earned Income Tax Credit (EITC) or the Saver’s Credit could lower your tax bill or increase your refund—but only if you file.
3. Avoid Government Confusion or Penalties
Sometimes, filing helps prevent miscommunications with the IRS, Medicare, or Social Security. It keeps your records current and accurate.
4. Improve Future Benefits or Housing Eligibility
Many state and federal assistance programs ask for your most recent tax return. Filing helps you qualify more easily.
When Is Social Security Taxable?
Social Security benefits are not always tax-free. It depends on your combined income, which includes:
- Adjusted Gross Income (AGI)
- Nontaxable interest (like municipal bonds)
- Half of your Social Security benefits
Tax Thresholds:
- Single filer: $25,000
- Married filing jointly: $32,000
If you’re over these limits:
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- Up to 50% of your Social Security may be taxable.
- If your income is even higher, up to 85% may be taxable.
Use the IRS Interactive Tax Assistant here to check if your benefits are taxable.
Is Social Security Enough Guide: Should You File in 2025?
Step 1: Review Your Total Income
Add up all sources: Social Security, pensions, part-time work, investments.
Step 2: Calculate Your Combined Income
Use the formula above to estimate if your benefits are taxable.
Step 3: Look for Withheld Taxes
Check if any federal taxes were withheld from your 401(k), annuity, or other income.
Step 4: Evaluate Eligibility for Tax Credits
You may qualify for:
- Earned Income Tax Credit (EITC)
- Child or Dependent Care Credit
- Saver’s Credit
- Education credits (if you’re in school)
Step 5: Use IRS Tools or Talk to a Tax Pro
IRS Free File here is a great start, or get help from VITA (Volunteer Income Tax Assistance) programs.
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FAQs About Is Social Security Enough
Do I have to file a tax return if I only get Social Security?
Generally, no. But if your combined income exceeds the IRS thresholds, you might have to—or should for refund or credit reasons.
What if I’m married? Do both our incomes count?
Yes. For joint filers, the threshold is $32,000 combined income.
Can Social Security benefits be garnished for unpaid taxes?
Yes, in some cases. The IRS can garnish part of your benefits for unpaid tax debts.
What if I worked part-time in 2024?
Even small side jobs may require you to file. You could get a refund or qualify for credits.
