Does Ohio Tax Social Security?

by Rod Howell ; Updated July 27, 2017

If you live in Ohio, you may be able to receive benefits from the Social Security Administration if you were to retire or become disabled. Your family can also receive SSA benefits if were to die. These payments are not subject to Ohio state taxes. However, you may have to pay federal taxes on your benefit amounts if you receive other income.

Facts About Ohio and Social Security

In 2009, over two million SSA beneficiaries lived in Ohio and received over $2.2 billion in benefits each month, per the Administration. Ohio is one of six states in the SSA’s Chicago Region along with Indiana, Illinois, Michigan, Wisconsin and Minnesota. As of 2011, residents of Ohio have access to 57 local SSA offices scattered throughout the state to receive in-person help with their inquiries and benefit applications.

Types of SSA Benefits Available

Ohio residents can apply to three different SSA Benefit programs: survivors, disability and retirement. Survivors benefits are paid to your family members if you were to die. You can receive survivors benefits if your spouse dies and had met the requirements of the program. Disability benefits are paid to you if you cannot work due to long-term disabilities. Your benefits are paid after you satisfy waiting periods of up to five full months. You receive retirement benefits from the SSA once you reach full retirement age which depends on your year of birth. You have to be at least 67 if you were born after 1960.

General Requirements

Each program has a set of requirements you must meet to qualify. Some of the basic requirements for all three programs are that you paid into Social Security when you worked and accrued enough work credits. As of 2011, you earn work credits by making over $1,120 in a year. A maximum of four credits are earned when you make $4,480. Generally the minimum qualifying amount of Social Security credits are 40, but you can still qualify for benefits with less under certain circumstances, such as an early disability or death prevented you from reaching the required total. Your benefits are based on your lifetime of earnings. Each year the SSA calculates your benefit amounts and sends you a Social Security statement with information about your payments.

Taxation of Social Security Benefits

Normally your benefits are not considered taxable compensation by the IRS. However, if you have other substantial incomes, such as wages, interest and dividends, you may have to report your SSA benefits for federal taxation purposes. As of tax year 2010, the IRS taxes 50 percent of your SSA Benefits at normal income tax rates if your total income tops $25,000 per year and 85 percent if your income surpasses $34,000. If you’re married and your total household incomes exceed $32,000 or $44,000 per year, the IRS taxes 50 and 85 percent of your benefits, respectively.