The IRS has handled over 44 million returns of taxes this tax season and has reimbursed close to $93 billion. If you get Social Security benefits, you might file without a second thought if it’s not necessary, but there might be a compelling case for doing so this year. Whether you must file an IRS tax return depends on several factors, including your age, marital status, and the amount of money you make beyond Social Security benefits. If you wish to collect tax credits that are refundable or else a refund for the taxes on the income you paid within the year, filing may be a smart idea even if it’s not necessary. We’ll assist you in determining whether you must submit taxes in 2024. See this article for additional reasons to save the COLA letter you got last year. Here’s the maximum monthly Social Security benefit you can receive, the recommended COLA rise, and our recommendations for the finest tax software.
Social Security Payments May Be Taxable
If one-half of the benefits you receive from Social Security as well as all of your additional income exceeds the base amount concerning your filing status (the amount used to calculate your tax due), your Social Security payments may be taxable. This is $25,000 for head of household, single filers, and qualified surviving spouses. Married individuals filing separately in 2023 who did not reside with their spouse will receive $25,000. $32,000 if two married individuals file jointly. $0 for married individuals who resided with their spouse but filed separately.
Wages, self-employment, interest, dividends, and other declared taxable income are examples of other sources of income. Examining your gross income, that is, your total income before taxes can help you determine if your benefits are taxable. For the 2024 taxation year, you must file the following return: If you are a senior without a spouse who is preferably 65 years old & earns more than $14,700 in gross income. If your gross income exceeds $28,700 and you are submitting a combined rebate with a partner who is likewise 65 or older. If your gross income exceeds $27,300 and you are claiming a joint refund with a partner who is younger than 65.
Submit A Tax Return
The primary motivation for filing a tax return, even if it is not required, is to obtain a tax refund. This year, you might want to submit a tax return if you made anticipated tax payments or had national tax income seized from your pay in 2023. Any overage withholding may be refunded to you as a tax. If you are eligible for tax credits that reimburse you, such as the Earned Income Tax Credit (EITC), the Child Tax Credit (CTC), or the child and dependent care tax credit, filing is also advised. Fully refundable, the EITC is applied to your tax refund if you owe no taxes.
In January, you will get a Statement regarding Social Security Benefits through the mail or online from the Social Security Administration, which includes information on your benefits from the previous year. You will find the profits listed in your tax return, should you choose to file one, in the information provided in the statement. Check out this guide on setting up an online IRS account for further details regarding Social Security as well as tax season.
