Should Social Security recipients file a tax return in 2024?

Social Security tax return: According to the Internal Revenue Service (IRS), the beginning of the tax season is on January 29. This means that you will soon be able to submit and send in your tax return. In addition, if you are receiving Social Security benefits, you are probably wondering whether or not you are required to submit your taxes for the current year.

Whether or not you are required to file a tax return with the Internal Revenue Service is contingent upon many factors, including your age, marital status, and the amount of income you earn outside of Social Security benefits. In addition, even if you are not obligated to file your taxes, it is still a good idea to do so if you want to obtain a refund for income taxes that you paid throughout the year or refundable tax credits.

Taxes 2024 is a portion of CNET’s coverage of the finest tax software, tax advice, and everything else you require in order to file your return and track your refund. This article is a part of that coverage.
Help us determine whether or not you will be required to file your taxes in the year 2024. The maximum amount of money that you are eligible to receive from Social Security each month, as well as the amount of a cost-of-living adjustment that you should receive, are listed here.

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What steps should I take to determine if my Social Security benefits are taxable?

There is a possibility that your Social Security payments will be subject to taxation if the sum of one-half of your Social Security benefits and all of your other income is more than the base amount of your filing status, which is the amount that provides the basis for assessing your tax responsibility.

• Single filers, heads of household, or a qualifying surviving spouse are eligible for a tax credit of $25,000.
• For married individuals who filed their taxes separately and resided apart from their spouse in 2023, the amount is $25,000.
• Those married couples filing jointly are eligible for $32,000.
• $0 for married individuals who filed their taxes individually and cohabitated with their spouse.

In addition to wages, self-employment, interest, dividends, and other forms of reported taxable income, other types of income include self-employment.

When determining whether or not your benefits are subject to taxation, it is helpful to take into account your gross income, which is your entire earnings before taxes.

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You are required to submit a return for the tax year that begins in 2024:

• If you are a senior citizen who is at least 65 years old and has a gross income that is greater than $14,700 and you are not married.
• If your gross income is greater than $28,700 and you are filing a combined return with a spouse who is likewise 65 or older, you are eligible for a tax deduction.
• If your gross income is greater than $27,300 and you are filing a combined return with a spouse who is younger than 65 years old, you are eligible for a tax deduction.

An additional method for determining whether or not your Social Security payments are subject to taxation is to examine your combined income, which is comprised of your adjusted gross income, interest that is not subject to taxation, and fifty percent of your Social Security benefits.

• The Social Security Administration (SSA) estimates that fifty percent of your benefits may be subject to income tax if your combined income is between $25,000 and $34,000.
• If your combined income exceeds $34,000 and you file your taxes as a single person, you may have to pay income tax on up to 85 percent of your benefits.
• If you file a joint return and your combined income is between $22,000 and $44,000, you may have to pay income tax on fifty percent of your benefits.
• For joint returns with combined income over $44,000, up to 85 percent of your benefits may be subject to income tax.
• Even if you are married and filing separately, if you did not reside with your spouse during the previous year, you will be taxed as a single filer.
• If you file your taxes separately and live with your spouse, you may have to pay taxes on your benefits.

The part of your Social Security tax return benefits that is subject to taxation is something that you will declare on line 6b of either Form 1040 or Form 1040-SR.

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Should I still submit my taxes for 2023 even if I am not required to?

Tax refunds are one of the most compelling reasons to file a tax return, even if you are not required to.

A tax return may be necessary if you paid estimated taxes or had federal taxes deducted from your paycheck in 2023. If you made excess withholdings, you might be eligible for a refund.

If you are eligible for tax credits, you can receive refunds if you file your taxes. The earned income tax credit, child tax credit, and child and dependent care tax credit are included. You can apply the earned income tax credit to your future tax return if you do not owe any taxes.

What is my Social Security benefit amount for 2023?

In January, the Social Security Administration will give you a Social Security Benefit Statement, which can be accessed online or through the mail. This statement will contain information on your benefits from the previous year. You are provided with the earnings that you will reveal in your tax return, in the event that you decide to file one, by the information that is contained in the statement.

If you want to learn more about Social Security and tax season, here are some of the reasons why you should open an online account with the Internal Revenue Service before the start of tax season.