Tag: Income tax in the United States

1 Month Until Tax Day. Social Security Can Help You Prepare!
Social Security Disability

1 Month Until Tax Day. Social Security Can Help You Prepare!

This year the tax return filing deadline, or Tax Day, falls on April 17.
Social Security can help you prepare: If you receive Social Security benefits, Social Security provides you with an annual Benefit Statement, also known as the SSA-1099 or the SSA-1042S.
A Benefit Statement shows the total amount of benefits you received from Social Security in the previous year, so you know how much Social Security income to report to the IRS on your tax return.
If you misplaced your Benefit Statement or didn’t receive it by the end of January, and you currently live in the United States, you can get a replacement form quickly and easily with a my Social Security account.
Our Business Services Online suite of services can help individuals and small businesses prepare for tax day.
You can also check out our Information for Tax Preparers site to find out all the ways we can help you prepare for tax day this year and in the future.
A my Social Security account helps you out several ways during tax season and beyond.
In addition to getting your replacement Benefit Statement, you can check your Social Security Statement to verify your annual earnings are posted correctly.
By verifying that your earnings were reported correctly, you are helping us keep your earnings record accurate.
Sign in or create an account, and see what you all can do online with my Social Security.

Is Social Security Disability Taxable?
Social Security Disability

Is Social Security Disability Taxable?

Is Social Security Disability Taxable?.
Most Americans pay Social Security payroll taxes out of their paychecks in order to fund the benefits that go to those who currently collect Social Security.
Yet in a couple of situations, benefits that Social Security pays are indeed taxable for federal income tax purposes.
One of those situations involves Social Security disability, and although many people end up not owing income tax on their disability benefits, some do.
Below, we’ll look at disability benefits both from the SSDI and the Supplemental Security Income programs to determine what, if any, of their benefits you might have to include in your taxable income.
To determine whether you might have to include a portion of your benefits as taxable income on your federal return, you have to take into account both what you get from SSDI and any other income you have.
However, if the amounts are greater than those thresholds, then you might have to include some of your benefits as taxable income.
For the majority of people on receiving disability payments under SSDI, income levels are low enough that their benefits won’t meet these thresholds and therefore won’t be subject to taxation.
The good news is that the IRS never forces you to include SSI payments in your taxable income.
Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after.

4 Tax Filing Tips For People 65 And Older
Social Security Disability

4 Tax Filing Tips For People 65 And Older

4 Tax Filing Tips For People 65 And Older.
By Alissa Sauer, Next Avenue Contributor Tax filing time is quickly approaching (April 18, this year), so it’s a good time to offer a reminder about tax filing rules, tax deductions and tax credits specifically for people 65 and older.
1. Who Needs to File Every unmarried person over 65 who had a gross income of at least $11,900 in 2016 is required to file an income tax return.
Social Security benefits are not included in that gross income figure unless: you were either married filing separately and lived with your spouse at any time during 2016 or half of your net Social Security benefits plus other gross income and any tax-exempt interest exceeded $25,000 ($32,000 if you were married and filing jointly).
If you met either of those two exceptions, the taxable portion of your Social Security benefits is included in your gross income for determining whether you need to file a return.
If you lived only on Social Security in 2016, you won’t need to file a federal income tax return.
The Elderly or Disabled Tax Credit Some taxpayers over age 65 qualify for the Tax Credit for the Elderly or Disabled, which ranges between $3,750 and $7,500.
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If you were married and only one of you was 65 or older in 2016, you can still use the 7.5% rule.
Required Minimum Distributions from IRAs If you are 70 ½ or older and have a traditional IRA, you must take Required Minimum Distributions (RMD) and report them on your tax return.