As a beneficiary of Supplemental Security Income, the 2024 tax season is well underway, and you may be considering filing your taxes now or later. Although there isn’t a universal solution, we can assist you in determining if filing is worthwhile. For example, you may qualify for additional tax credits and perhaps earn a larger sum of money if and when you submit your taxes. Below is an explanation. Find out if, as an SSI recipient, you need to file your tax bill this year. In addition, here are some things to know regarding the CTC and how much additional cash you should anticipate receiving if you earn Social Security payments after the COLA hike in 2024. And these are the top tax software recommendations from us.
The money you get from SSI is not taxable and is not regarded as earned income. SSI benefits, on the other hand, are intended to assist those who have low incomes, specific disabilities, and more. There are various reasons why you might wish to file taxes even though it’s not necessary. The main justification is that you might receive a tax return, which would mean additional cash for you. Additionally, you may qualify for additional advantages that could increase your income, such as the earned income tax credit and child tax credit.
Which Tax Credits Am I Eligible For If I Obtain SSI?
If you get SSI, you’re still qualified for extra tax credits, that won’t reduce the sum of SSI funds you receive. As previously stated, if you match the requirements, you are eligible to claim the CTC. Depending on your income, you may earn up to $2,000 for each child you have under the age of 17. Here is where you can check out the amount that CTC money you qualify for. Another tax benefit available to low- to moderate-income people and families is the Earned Income Tax Credit (EITC). The amount you receive is determined by the number of children you have & your income. The number of children you have plus your salary are the determining factors in your payout. In the event that you are eligible, you can utilize the EITC to lower any potential tax obligations. It may be returned to you if you have no outstanding taxes. Keep in mind that if you claim any of these tax incentives when filing your taxes, it can take longer for you to receive your refund.
How Much Am I Going To Be Taxed?
You will be required to pay taxes if your earnings plus half of your SSDI benefits surpass the aforementioned basic level. The IRS has calculated the potential tax amount for you. If you submit a federal tax refund as an individual as well as your total income ranges from $25,000 and $34,000, you may be required to pay tax on income on a maximum of fifty percent of your benefits. You and your spouse file a joint rebate, and your total income ranges from $32,000 to $44,000. Income tax may be due on around 85% of the benefits you received if: Your combined income surpasses $34,000 and you file a national tax rebate as an individual. You and your spouse claim a joint return, as well as your combined income exceeds $44,000.
