Current:Home > FinanceIs Social Security income taxable by the IRS? Here's what you might owe on your benefits-VaTradeCoin
Is Social Security income taxable by the IRS? Here's what you might owe on your benefits
lotradecoin crypto-to-crypto transactions View Date:2024-12-25 23:40:31
When it comes to tax season, there's barrage of mind-boggling forms and detailed calculations. It can feel like a herculean task to get your personal finances in order, especially if you're not quite sure of the rules.
If you receive Social Security benefits from the government, for example, that money is subject to taxes. The amount you have to pay varies based on income and whether you are filing a joint or individual return.
To walk you through the process, here's a guide to the formula used by the Internal Revenue Service to determine just how much you'll owe on your benefits:
Are Social Security benefits taxable?
Yes. The rules of the Internal Revenue Service dictate that many who receive Social Security benefits will have to pay an income tax on that money.
The amount you pay is determined by a calculation that involves what the IRS calls "combined income."
Combined income is: Your adjusted gross income plus nontaxable interest plus half of your Social Security benefits.
Up to 85% of your Social Security benefits are taxable if:
- You file a federal tax return as an "individual" and your combined income is more than $34,000.
- You file a joint return, and you and your spouse have a combined income of more than $44,000.
Up to 50% of your Social Security benefits are taxable if:
- You file a federal tax return as an "individual" and your combined income is between $25,000 and $34,000.
- You file a joint return, and you and your spouse have a combined income between $32,000 and $44,000.
SSA-1099 form: How to get it
To help you figure out how much you received in benefits over the course of the year, the Social Security Administration should send you a form in January.
This is your Social Security Benefit Statement, or SSA-1099, and can be used to figure out how much you owe when you are filing your federal tax return.
For all those who receive benefits, the SSA-1099 should be mailed to you automatically. If you do not receive it, a printable version should be available online after you create a "my Social Security" account.
Contributing: Olivia Munson
More of your 2023 tax season questions answered
- Tax season guide for new parents: What to know about the Child Tax Credit, EITC and more
- What is OASDI tax on my paycheck? Here's why you and your employer pay this federal tax
- What is a 1098-E form? What you need to know about the student loan interest statement
- Tax season: What exactly is the mileage rate? There's more than one.
- Is it better to pay someone to do your taxes or do them yourself? We'll help you decide.
- What is income tax? What to know about how it works, different types and more
- Who has to file a tax return: It's not necessary for everyone. Here are the rules.
- What is capital gains tax in simple terms? A guide to 2023 rates, long-term vs. short-term
- Best way to receive your tax refund? IRS says direct deposit. Here's how to do it.
- What is FICA? How much you contribute to federal payroll taxes.
- How much is the Child Tax Credit? Here's what you need to know about qualifying.
veryGood! (6)
Related
- Albertsons gives up on Kroger merger and sues the grocery chain for failing to secure deal
- Lack of water worsens misery in besieged Gaza as Israeli airstrikes continue
- Conservative leaders banned books. Now Black museums are bracing for big crowds.
- City councilwoman arrested for bringing gun to pro-Palestinian rally: NYPD
- Beyoncé's BeyGood charity donates $100K to Houston law center amid Jay
- Cardinals complex in the Dominican Republic broken into by armed robbers
- Kourtney Kardashian Fires Back at Criticism Over Getting Pregnant at Age 44
- Hunger Games Director Shares He Totally Regrets Dividing Mockingjay Into Separate Parts
- 'Mary': How to stream, what biblical experts think about Netflix's new coming
- Hospitals in Gaza are in a dire situation and running out of supplies, say workers
Ranking
- 'September 5' depicts shocking day when terrorism arrived at the Olympics
- Breaking Down Influencer Scandals from Lunden Stallings and Olivia Bennett to Colleen Ballinger
- Conservative leaders banned books. Now Black museums are bracing for big crowds.
- Man United sale: Qatari banker Sheikh Jassim is withdrawing his bid - AP source
- Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Follow Your Dreams
- 'Star Trek' actor Patrick Stewart says he's braver as a performer than he once was
- Australians decided if Indigenous Voice is needed to advise Parliament on minority issues
- 'Star Trek' actor Patrick Stewart says he's braver as a performer than he once was
Recommendation
-
Through 'The Loss Mother's Stone,' mothers share their grief from losing a child to stillbirth
-
Weary families trudge through Gaza streets, trying to flee the north before Israel’s invasion
-
Missouri auditor investigates St. Louis jail amid concerns about management and treatment of inmates
-
Jade Janks left a trail of clues in the murder of Tom Merriman. A look at the evidence.
-
Worst. Tariffs. Ever. (update)
-
UAW announces new approach in its historic strike against the Big Three automakers
-
New York Film Festival highlights, part 2: Priscilla, a different P.O.V. of the Elvis legend
-
Man convicted in ambush killing of police officer, other murders during violent spree in New York