A question may arise for retirees who only receive Social Security income: should they file taxes? At Globe Live Media we answer this question
Nearly 70 million people in the United States receive retirement benefits from the Social Security Administration (SSA). And in this situation, the question may arise as to whether they must file with the Internal Revenue Service.
If the answer is a duty, the answer is NO. Most retirees, if they rely solely on Social Security income, are not required to file a tax return, as this income is not taxable, however, if you want to receive a tax refund, then it is something that preparers recommend doing.
The tax season for reporting 2022 income began last January 23, 2023 and is scheduled to end next April 18, 2023. Social Security beneficiaries must file a tax return if they want a refund and also in some cases, where it will depend on factors such as their age, marital status and the amount of income they get from sources other than the SSA.
When are Social Security benefits taxed?
According to the Internal Revenue Services (IRS), Social Security income is taxable when half of your Social Security benefits plus half of your other income from other sources is more than the base amount of your filing status. The amounts established to determine the tax liability are:
-$25,000 for single taxpayers, heads of household or qualified surviving spouses.
-25,000 for married individuals filing a separate return who were living apart from their spouse in 2022
-32,000 for married couples filing a joint return
-0 for married individuals filing separately who were living with their spouse
What other income must retirees report?
This refers to other wages, income received from self-employment, some interest payments, dividends, to name a few.
Who must file a return even if they receive Social Security benefits?
Those who meet the following standards:
-A person who is single and at least 65 years old and your gross income is more than $14,700.
-If you file a joint return with a spouse who is also age 65 or older and your gross income is more than $28,700.
-If you file a joint return with a spouse under age 65 and their gross income is more than $27,300.