IRS reminds taxpayers their Social Security benefits may be taxable

Author: External Author | | Categories: Accountants , Accounting Firm , Accounting Services , CPA , Finance Services , Payroll Services , Sales Tax Filing , Tax Filing , Tax Preparation Services , Tax Preparer , Tax Services

A new tax season has arrived. The IRS reminds taxpayers receiving Social Security benefits that they may have to pay federal income tax on a portion of those benefits.

Social Security benefits include monthly retirement, survivor and disability benefits. They don't include supplemental security income payments, which aren't taxable.

The portion of benefits that are taxable depends on the taxpayer's income and filing status.

To determine if their benefits are taxable, taxpayers should take half of the Social Security money they collected during the year and add it to their other income. Other income includes pensions, wages, interest, dividends and capital gains.

  • If they are single and that total comes to more than $25,000, then part of their Social Security benefits may be taxable.
  • If they are married filing jointly, they should take half of their Social Security, plus half of their spouse's Social Security, and add that to all their combined income. If that total is more than $32,000, then part of their Social Security may be taxable.

Read More
Original Article Source Credits: IRS,

Article Written By: NA 

Original Article Posted on: February 9, 2022

Link to Original Article: