By the beginning of 2023, 53 million Americans Employees aged 65 and over received retirement benefits from the Social Security Administration (SSA). Monthly payments are the most widely used form of federal financial assistance and an important form of assistance for seniors. However, many recipients are unsure about the tax implications.
As the tax season progresses, The deadline for filing 2022 tax returns is Tuesday, April 18. Many people are asking if seniors receiving Social Security payments should be required to file tax returns.
in short, Senior citizens are subject to approximately the same tax requirements as other adults.There is no age when you no longer have to file a tax return and most seniors are required to file taxes each year.
However, if social security is the only source of income, tax exemptFor couples filing jointly, this must be true for both spouses.
in fact, If your taxable income is less than $14,250 or $28,700 for a married couple, Then you won’t have to pay income tax on those earnings and you won’t have to file a tax return.
How are Social Security retirement benefits taxed?
Since 1983, Social Security payments have been taxed when the recipient’s income exceeds a certain threshold. But even the highest earners of social security The full amount is never fully taxableThe top is 85% of total social security benefits received.
To be taxed on your Social Security benefits, you must have At least $25,000 or $32,000 in gross income For couples submitting jointly. If you earn more… $34,000 minimum for individuals, $44,000 for couples – Up to 85% of benefits are taxable.
To calculate whether you have a tax liability for social security benefits, the IRS Calculate taxable profits worksheet. You may find that your taxable income increases by 50-85% of your annual Social Security benefits.
During the tax season, all Social Security recipients Social Security Benefit Statement (Form SSA-1099), detailing the full amount of benefits received in 2022. Use this to calculate your tax liability for the current season.
