Nobody likes having to file their taxes each year, yet it is one of the many necessities of life. However, filing taxes can be more intimidating or complex based on your income. Those living on social security naturally may have several questions on the matter.
Most people have one question regarding social security and taxes: do they need to file if most of their income is based on social security? The correct answer can vary, but on the whole, while it isn’t always required to file taxes – it is usually recommended.
Filing Taxes While on Social Security
There are a few things to keep in mind when filing taxes. First, it’s important to remember that tax regulations can change every year, so look into new requirements and changes before filing.
Currently, seniors over sixty-five who are unmarried and make more than a certain amount will have to file. However, social security benefits aren’t considered part of a person’s gross income. This means that their gross income would be zero for those solely depending on social security.
There are a few mitigating factors for this rule, so it is essential to reach out to a filing expert to ensure that your forms are filled out correctly. For example, married seniors must file if their income exceeds a certain amount. There are situations where social security might count towards gross income (such as when a married couple chooses to file separately).
Don’t forget to research potential tax credits when filing your taxes. Certain tax credits are available for the elderly and the disabled, which can help you get the most out of your tax return.
Benefits of Filing
Believe it or not, there are several benefits to filing taxes, especially if all of your income is through social security. Filing taxes opens the door for tax returns – which are likely for those that have any taxes withheld for their social security payments. In other words, failure to file can result in lost returns. Depending on their situation, there are other potential returns one can receive when filing. This is why it is recommended that everyone file taxes and approach an expert should they have any questions or concerns.
Not associated with or endorsed by the Social Security Administration or any other government agency.
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