With the arrival of the tax season, it is likely that some doubts will arise around the declarations that must be made taxpayers receiving Social Security retirement, survivor and disability benefits.
According to the Internal Revenue Service (IRS), this return it will be done based on the person’s income and marital status, that is, if a joint or individual return is filed. This contribution does not include Supplemental Insurance payments, which are not taxable.
To complete the process, the IRS has a guide to determine how much is owed for benefits. In this case, the taxpayer must take into account half of the money received by Social Security throughout the year and add it together with other income: pensions, interest, capital gains or wages, among others.
In case of being single and the total amount of the sum exceeds the $25,000, 50% of your Social Security benefits may be taxable, if the amount for the same taxpayer is greater than the $34,000 must declare 85% of its benefits.
As for couples, each one should only place half of what they receive from social security, and with that make a joint declaration, if the sum of everything is more than $32,000, the amount may be 50% taxable. But, if when combining both incomes the amount is above the $44,000 must be declared up to 85%.
According to the IRS, it is important to note that children who as dependents or survivors receive Social Security benefits those payments are not subject to taxes. The only way to report on that money is for the beneficiary to have other sources of income.
Taxpayers can also decide how they will present your statement, which can be quarterly or ask the IRS to withhold the amount of federal taxes from the Social Security benefit.
Every year in January, taxpayers receive a form for their Social Security Statement of Benefits with identification “SSA-1099″, this document shows the amount of benefits received during the past year.
It may interest you:
11 states in the US where taxpayers will pay less in taxes in 2023
Tax refund in 2023: what are the estimated dates on which they will reach taxpayers