The Internal Revenue Service (IRS) is getting ready for a new tax season. The earlier you start getting ready, the better. In this way, you will take advantage of receiving a tax refund as soon as possible.
What is more, you will not forget about any details which can reduce wait time too. Not sending accurate information or sending an incomplete return to the IRS can be counter-productive.
If you have recently retired and have just collected Social Security payments, you must be wondering whether you have to pay taxes or not to the IRS. Your check could be for retirement, a disability or for being a survivor. But not SSI because they are not taxable.
ARE MY SOCIAL SECURITY BENEFITS TAXABLE?
According to the Internal Revenue Service (IRS), your Social Security benefits may be taxable if the total of 1/2 of your SSA payments, plus all of your earnings, (tax-exempt interest included) is more than the base amount. This base amount is also different if you are single, married or file separately.
Married couples filing jointly have a base amount of $32,000 said the IRS. However, if you are married filing separately and lived with your spouse at any time during the tax year, it is $0.
Single filers have a base amount of $25,000. It is also the same amount if you are a head of household. Qualifying surviving spouses also have the same base amount, $25,000.
Married couples filing separately who lived apart from each other for the whole year have a base amount of $25,000 too. Do not forget to combine your income and your spouse’s with your Social Security benefits reminds the IRS. Even if your spouse does not get benefits.
HOW CAN I FILE MY IRS TAXES WHILE ON SOCIAL SECURITY?
Those Social Security beneficiaries who decide to file their tax return online will have it much easier. This is because electronic filing software will tell you the form you need to file.
Regardless of the form you need, it is advisable to gather all the information you need. For example, the IRS recommends keeping all the income documents you receive every year.
What is more, you will need to provide them with your spouse’s age, and filing status as well as your age. Of course, you will have to inform the IRS of the Federal income tax withheld. Remember that this online tool to file is just for U.S. citizens or resident aliens for the whole tax year.
Married filers must also be U.S. citizens and resident aliens for the whole year. If not, you should check information regarding International Taxpayers. Visit https://www.irs.gov/help/ita/which-form-should-i-use-to-file-my-taxes for more details.