Maximizing Benefits: Key Motivations for Social Security Recipients to File Taxes in 2024

By Edward Bonaparte On Feb 27, 2024

With tax season well underway, the IRS has already processed over 34.5 million returns. If you are receiving Social Security benefits, you may not have to file your taxes this year, but there could be a beneficial reason to do so.

Age, marital status, and income earned outside of Social Security benefits all play a role in determining if you are required to file a tax return with the IRS.

It could be beneficial to file your taxes, even if it’s not mandatory, to potentially receive refundable tax credits or a refund for the income taxes you have paid throughout the year.

We can assist you in determining whether you will need to file your taxes in 2024. Here’s a compelling reason to keep that COLA letter you received last year.

Additionally, we have details on the maximum Social Security benefits per month, projected COLA increases, and recommendations for top tax software.

Checking Tax Status: Are Your Social Security Benefits Taxable?

If half of your Social Security benefits combined with your other income exceeds the base amount for your filing status, your Social Security benefits may be subject to taxation.

For single filers, head of household, or a qualifying surviving spouse, the amount is $25,000.
Married individuals who filed separately and lived apart from their spouse in 2023 may be eligible for a $25,000 deduction.
Married couples filing jointly can claim $32,000.
No amount for individuals who are married and filed separately while living with their spouse.

Additional sources of revenue consist of salaries, entrepreneurial endeavors, returns on investments, and other documented taxable earnings.

One method to determine if your benefits are subject to taxation is by examining your gross income, which includes all earnings prior to tax deductions.

It is necessary to submit a return for the tax year 2024.

For individuals who are single seniors aged 65 or older with a gross income exceeding $14,700.
If you are submitting a joint return with a spouse who is also 65 or older and your total income exceeds $28,700.
If you are submitting a joint return with a spouse who is under 65 years old and your total income exceeds $27,300.

One method to determine if your Social Security benefits are subject to taxation is by calculating your combined income, which includes your adjusted gross income, nontaxable interest, and half of your Social Security benefits.

For single tax filers with a combined income between $25,000 and $34,000, the SSA indicates that they might need to pay income tax on up to 50% of their benefits.
For single tax filers with a combined income exceeding $34,000, there may be a requirement to pay income tax on up to 85% of the benefits.
For those filing a joint return with a combined income ranging from $32,000 to $44,000, there may be a requirement to pay income tax on a portion of their benefits.
If a joint return is filed with a combined income exceeding $44,000, income tax may need to be paid on up to 85% of the benefits.
When filing separately and not living with your spouse, Social Security benefits are taxed as if you were a single filer.
If you are married and filing separately while living with your spouse, you will likely have to pay taxes on your benefits.

Line 6b of either Form 1040 or Form 1040-SR is where you will need to indicate the taxable portion of your Social Security benefits.