0
Tax Day 2024. You May Want to File Taxes Even if You Receive Social Security: Here's Why

Tax Day 2024. You May Want to File Taxes Even if You Receive Social Security: Here's Why

You may not need to file a tax return. Social Security Benefits Receiver, but should you file anyway? As of April 6, the IRS has received 101 million tax returns and sent about $201 billion in refunds. You may still be eligible for a refund. Tax seasonif you meet certain qualifications.

tax-tips.png

Your age, marital status and how much income you have outside of Social Security benefits all affect whether you need to file a tax return with the IRS. Even if you don't have to file, it might be a good idea if you want to get refundable tax credits or refunds for income taxes you paid during the year.

We'll help you figure out if you'll need to file your taxes in 2024. For more, why you might want to do this Grab that COLA letter you received last year.. Also, here it is Maximum amount of social security You can receive each month, how much a Increase in COLA You should find and our picks for it The best tax software.

How do I know if my Social Security benefits are taxable?

Your Social Security benefits may be taxable if half of your Social Security benefits and all of your other income. More than the base amount of your filing status (Basic amount for determining tax liability) which is:

  • $25,000 for single filers, heads of household, or qualifying surviving spouses.
  • $25,000 for married people who were living separately from their spouse in 2023.
  • $32,000 for married couples filing jointly.
  • $0 for married people filing separately who lived with their spouse.

Other types of income include wages, self-employment, interest, dividends and more. Other taxable income is reported..

Smart money advice on topics that matter to you.

CNET Money brings financial insights, trends and news to your inbox every Wednesday.

One way to understand whether your benefits are taxable is to consider gross income, which is your total income before taxes.

You will need to file a return for the 2024 tax year:

Smart money advice on topics that matter to you.

CNET Money brings financial insights, trends and news to your inbox every Wednesday.

  • If you are an unmarried senior at least 65 years old and have a gross income of more than $14,700;
  • If you are filing a joint return with a spouse who is also age 65 or older and your combined income exceeds $28,700.
  • If you are filing a joint return with a spouse who is under age 65 and your combined income exceeds $27,300.

Another way to figure out whether your Social Security benefits are taxable is to look at combined income, which is your adjusted gross income + nontaxable interest + half of your Social Security benefits.

  • If you are a tax filer and your combined income is between $25,000 and $34,000, The SSA says You may have to pay income tax on up to 50% of your benefits.
  • If you are a single tax filer and your combined income exceeds $34,000, you may pay up to 85% of your benefits in income tax.
  • If you're filing a joint return and your combined income is between $32,000 and $44,000, you may have to pay income tax on up to 50% of your benefits.
  • If you're filing a joint return and your combined income is more than $44,000, you may have to pay income tax on up to 85% of your benefits.
  • If you're married filing separately and you didn't live with your spouse last year, your Social Security benefits are taxed. As if you are a single filer..
  • If you are married and filing separately while living with your spouse, you may have to pay taxes on your benefits.

On line 6b of Form 1040 or Form 1040-SR, you'll report the taxable portion of your Social Security benefits.

Should I file my 2023 taxes even if I don't need to?

The main reason to file a tax return is to get a tax refund.

If you had federal income tax withheld from your paycheck or if you made estimated tax payments in 2023, you may want to file a tax return this year. You may get a tax refund of any surplus withholding.

See it: 5 Tax Tips for 2024

Another situation where filing is encouraged is if you qualify. Tax credits that gives you a refund, including the Earned Income Tax Credit, Child Tax Credit or Child and Dependent Care Tax Credit. The Earned Income Tax Credit is fully refundable, meaning it goes toward your tax refund if you have no tax liability.

How can I find my Social Security benefit amount for 2023?

The Social Security Administration sends a Social Security benefit statement by mail or online in January that shows your benefits for the previous year. The information on the statement gives you the income you'll show on your tax return if you file it.

For more information on Social Security and tax season, click here. How to Create an IRS Account Online.

About the Author

Leave a Reply