Millions of Americans who pay taxes also collect Social Security, and now they want to know how it could impact their tax returns.
A lot of people solely live on Social Security as their source of income.
Many Americans retire and accept much less than what they made before retiring.
When you need to pay the IRS taxes for Social Security
You need to calculate your entire income, including Social Security benefits, for the tax year.
Once you have a total you will be able to see if you owe taxes.
Most individuals with a combined income under $25,000 won’t need to pay taxes on their benefits.
For couples that number is $32,000.
If your combined income reaches between $25,000 and $34,000 for singles or $32,000 and $44,000 for married couples, you’ll see up to 50% of your benefits taxed.
If your income is over $34,000 single or $44,000 married, you could see up to 85% of your benefits taxed.
How will I know if I owe taxes on my Social Security?
You will receive a benefit statement from the SSA.
You’ll also see a Form SSA-1099.
The form will help you complete your tax return to see if you owe taxes.
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