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As of November 2012, there were seven states that did not charge any type of state income tax, including taxes on Social Security benefits. These states include Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Two more states, Tennessee and New Hampshire, do not tax income or Social Security benefits, but do tax interest and dividends.
1 Form SSA-1099. 2  If you received Social Security in 2014, you should receive a Form SSA-1099, Social Security Benefit Statement, showing the amount of your benefits. 3  Only Social Security. 4  If Social Security was your only income in 2014, your benefits may not be taxable. If Social Security was your only income in 2014, your benefits may not be taxable. 2  You also may not need to file a federal income tax return. 3  If you get income from other sources you may have to pay taxes on some of your benefits. 4  Free File. 5  Use IRS Free File to prepare and e-file your tax return for free.