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. 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. If Social
Security was a taxpayer’s 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. Taxpayers may use
IRS
Free File 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. It’s best for people who are used to doing
their own taxes. Free File is available only by going to IRS.gov/freefile.
- Interactive Tax Tools. Taxpayers can get
answers to their tax questions with this helpful tool, Are
My Social Security or Railroad Retirement Tier I Benefits Taxable, to
see if any of their benefits are taxable. They can also visit IRS.gov and
use the Interactive
Tax Assistant tool.
- Tax Formula. Here’s 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. The three base amounts
are:
- $25,000 – if
taxpayers 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 – if they are
married filing jointly
- $0 – if they are
married filing separately and lived with their spouse at any time during
the year
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
Validating Your Electronically Filed Tax Return.
Additional IRS Resources:
- Social Security Income- Frequently Asked Questions
- Publication 915, Social Security and Equivalent Railroad Retirement Benefits
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