If the thought of paying taxes on the Social Security benefits you receive is making you hyperventilate, just take a deep breath and relax. We’re here to aid you with any social security tax help you might need.
You might be wondering, “are social security benefits taxed?” Though most of the people do have to make tax payments on the benefits they receive, it is largely dependent on the source of income. If Social Security makes the lion’s share of the income, then there is no need to pay any taxes. However, in addition to Social Security benefits, if there is any other source of income that has to report on the tax return form, then Social Security benefits become taxable.
The IRS offers guidelines to help you figure out where you stand regarding taxability of your benefits.
To use these guidelines, you need to know your combined income, which is basically your adjusted gross income (AGI), non-taxable interests and half of your Social Security benefits for the year.
Next, you compare this to the base amount totals given below. If it is more than the base amount, then your benefits will be taxable.
Here are the summarized guidelines.
- $25,000 – for single, head of household, qualifying widow or widower with a dependent child or married individuals filing separately who did not live with their spouse at any time during the year.
- $32,000– for married couples filing jointly.
- $0 – for married persons filing separately who lived together at any time during the year.
Social Security Benefit Statement
Always remember when you are filing your taxes, look for the Social Security Benefit Statement (Form SSA- 1099).
This is issued by the government and reports all the benefits you received during the past year.
Tax Help MD
Are you still unsure if your Social Security Benefits are going to be taxed? No need to stress anymore. Our experts at Tax help MD are ready to answer all your queries if you need any social security tax help. Call us now on 888-632-4506.