Depending on your situation, you may or may not have to pay taxes if you are receiving Social Security Benefits.
When Seniors do have to file taxes on Social Security?
The IRS will only require tax returns to be filed for any individual whose gross income amount is more than the standard deduction for their specific filing status, plus 1 exemption amount. These rules also apply to seniors who receive Social Security Benefits.
Do Social Security Benefits count towards your gross income?
No, seniors do not count Social Security Benefits towards gross income.
If I am a senior and Social Security Benefits is my only source of income, do I need to file a tax return?
No, Seniors who receive Social Security benefits as their only source of income do not need to file a tax return.
When Seniors don’t have to file taxes on Social Security?
If you are 65 years of age, single and have a gross income of $11,850 or higher you must file a income tax return or if your combined income including Social Security is $25,000. Although, as previously mentioned, if you only receive Social Security Benefits as your sole source of income, then your gross income amount = 0, and you do not need to file in this case.
If you’re a senior live mostly on social security but still receive other non tax-exempt income, as long as you stay under $11,850 you do not need to file a return. If any other income, (self-employment, wages, dividends, interest, etc.) other than Social Security Benefits is higher than $11,850, you will need to file an income tax return.
What If I’m a senior who is married and filling jointly, do my Social Security Benefits count as taxable income?
Married seniors above the age of 65 filing joint returns must file taxes if their combined income is $23,100 or higher. On the other hand, if you or your spouse in under 65 years of age, then the combined limit of gross income drops to $21,850 or higher before you need to pay taxes.
What percentage of my Social Security Benefits are taxable?
Depending on how much combined income you have, you will either be taxed %50 or 85% on your Social Security Benefits. See below for details on each situation.
How much of my Social Security Benefits are taxed if I am filing as an individual?
- 50% of your Social Security Benefits will be taxed for individuals whose combined income is between 25k and 34k.
- 85% of your Social Security Benefits will be taxed for individuals whose combined gross income higher than 34k.
How much of my Social Security benefits are taxed if I am filing jointly?
- 50% of your Social Security Benefits will be taxable for joint filers whose combined income is between 32k and 44k.
- 85% of your Social Security Benefits will be taxable for individuals whose combined gross income higher than 44k.
*Quick Social Security Tax Calculation For Combined Income:
Your AGI (Adjusted Gross Income)
+ Non-taxable interest
+ 50% of your Social Security benefits
= Your “combined income“
Senior Tax Credits For Elderly Or Disabled Taxpayers
Even though you may have to file a income tax return, there are a couple ways you can lower the amount of tax you have to pay. Are you 65 or older and have other income than just Social Security? It’s quite possible that the Senior tax credit for the elderly or disabled could reduce the amount of tax your have to pay on your combined income. Although, you cannot use this credit if you don’t owe any money to the IRS. Its only useful when you owe money.