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why do you have to pay taxes on social security

IRS Tax Tip 2014-23, February 28, 2014
Some people must pay taxes on part of their Social Security benefits. Others find that their benefits arenвt taxable. If you get Social Security, the IRS can help you determine if some of your benefits are taxable. If you received these benefits in 2013, you should have received a Form SSA-1099, Social Security Benefit Statement, showing the amount. If Social Security was your only source of income in 2013, your benefits may not be taxable. You also may not need to file a federal income tax return. If you get income from other sources, then you may have to pay taxes on some of your benefits. Your income and filing status affect whether you must pay taxes on your Social Security. The best, and free, way to find out if your benefits are taxable is to use IRS Free File to prepare and e-file your tax return. If you made $58,000 or less, you can use Free File tax software. The software will figure the taxable benefits for you. If your income was more than $58,000 and you feel comfortable doing your own taxes, use Free File Fillable Forms. Free File is available only at IRS. gov/freefile.


If you file a paper return, visit IRS. gov and use the Interactive Tax Assistant tool to see if any of your benefits are taxable. A quick way to find out if any of your benefits may be taxable is to add one-half of your Social Security benefits to all your other income, including any tax-exempt interest. Next, compare this total to the base amounts below. If your total is more than the base amount for your filing status, then some of your benefits may be taxable. The three base amounts are: $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 $0 For more on this topic visit IRS. gov. Additional IRS Resources:, Social Security and Equivalent Railroad Retirement Benefits IRS YouTube Videos: Is Social Security Taxable? - Welcome to Free File - IRS Tax Tip 2017-13, February 13, 2017 If taxpayers receive Social Security benefits, they may have to pay federal income tax on part of those benefits.


These IRS tips will help taxpayers determine if they need to do so. Form SSA-1099. В If taxpayers received Social Security benefits in 2016, they should receive a Form SSA-1099, Social Security Benefit Statement, showing the amount of their benefits. Only Social Security. В If Social Security was a taxpayerвs only income in 2016, their benefits may not be taxable. They also may not need to file a federal income tax return. If they get income from other sources, they may have to pay taxes on some of their benefits. Free File. В Taxpayers may use to prepare and e-file their tax returns for free. If they earned $64,000 or less, they can use brand-name software. The software does the math for them, which helps avoid mistakes. If taxpayers earned more, they can use Free File Fillable Forms. This option uses electronic versions of IRS paper forms. Itвs best for people who are used to doing their own taxes. Free File is available only by going to. Interactive Tax Tools. В Taxpayers can get answers to their tax questions with this helpful tool, to see if any of their benefits are taxable.


They can also visit IRS. gov and use the tool. Tax Formula. В Hereвs a quick way to find out if a taxpayer must pay taxes on their Social Security benefits: Add one-half of the Social Security income to all other income, including tax-exempt interest. Then compare that amount to the base amount for their filing status. If the total is more than the base amount, some of their benefits may be taxable. Base Amounts. $25,000 в if taxpayers В are single, head of household, qualifying widow or widower with a dependent child or married filing separately and lived apart from their spouse for all of 2016 $32,000 в if they are married filing jointly All taxpayers should keep a copy of their tax return. Beginning in 2017, taxpayers using a software product for the first time may need their Adjusted Gross Income (AGI) amount from their prior-year tax return to verify their identity. Taxpayers can learn more about how to verify their identity and electronically sign tax returns at. , Social Security and Equivalent Railroad Retirement Benefits Is Social Security Taxable? -

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