Tax season is here, and Social Security recipients might be wondering: Do I need to file a tax return this year?
The answer depends on several factors, including your age, marital status, and total income. This article clarifies the rules and helps you decide whether filing is necessary.
When Are Social Security Benefits Taxable?
Your benefits may be subject to taxes if your combined income exceeds specific thresholds based on your filing status. This combined income includes:
- Adjusted gross income (AGI)
- Nontaxable interest
- Half of your Social Security benefits
Filing Thresholds:
- Single filers:
- Under 65: $14,700 gross income OR $25,000 combined income
- 65 or older: $27,300 combined income
- Married filing jointly:
- Both spouses under 65: $28,700 combined income
- One spouse 65 or older: $32,000 combined income
- Both spouses 65 or older: $44,000 combined income
- Married filing separately (living apart): Treated as single filer
- Married filing separately (living together): Benefits likely taxable
Tax Rates:
- Up to 50% of benefits taxed if combined income falls within designated ranges for your filing status.
- Up to 85% of benefits taxed if combined income exceeds higher thresholds.
Should You File Your Taxes Even If Not Required?
Filing can be beneficial even if you don’t owe taxes, as it may lead to:
- Refunds: Reclaim withheld income tax or get refunds for eligible tax credits like the Earned Income Tax Credit.
- Tax Credits: Claim valuable refundable credits for children, dependents, or earned income.
Finding Your Benefit Amount:
Check your Social Security Benefit Statement received in January for your previous year’s benefits, necessary for accurate tax reporting.
- Create an online IRS account for easier tax filing.
- Visit the Social Security Administration website for more information.
