Search

Will You Pay Taxes On Your Social Security Payments In 2022?! (SSA, SSI, SSDI)

The first question we will answer is do you have to pay taxes on Social Security payments? First things first, you will want to calculate your combined income during tax season, assuming you receive Social Security payments. The way that you find this number is by working out your adjusted gross income, including wages, salary, investments, and Social Security benefits, in addition to some parts of non-taxable interest. Once you have figured this out, a beneficiary will be able to determine if you have to pay taxes or not. The majority of cases find that those with a combined income under $25,000 a year (or $32,000 for married couples) will not be required to pay taxes on their Social Security payments. Should your combined income fall between $25,000 and $34,000 a year (or $32,000 to $44,000 for married couples), the Social Security Administration could tax up to 50 percent of your payments. Moreover, if your income is over $34,000 a year (or $44,000 for married couples), you could be taxed up to 85 percent of your Social Security payments.


The next question we will answer today is, what is the process for filing taxes on your Social Security income? So you should have received a benefit statement from the Social Security Administration back in January, and more precisely Form SSA-1099. Once you have access to this form, you will be able to complete your federal income tax return to find out if your benefits are subject to tax. It is worth bearing in mind that the Social Security Administration allows Social Security beneficiaries to report their income on a quarterly basis, in order to avoid being hit with a surprise fee that they have to pay at the end of the year.

20 views0 comments