Social Security update: Do you need to file a return before Tax Day 2023 if you receive a check?
Misty Severi
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For people who receive monthly Social Security checks, the question of whether they need to file tax returns and if they could get a refund often arises around Tax Day.
Certain people will need to file a tax return on April 18. A filer’s age, marital status, and how much income they earn outside of Social Security benefits will affect whether they need to submit a tax return. Wages, self-employment income, interest, and dividends, for example, are all required to be reported on tax returns.
TAX DAY 2023: EVERYTHING YOU NEED TO KNOW IF YOU HAVEN’T FILED YET
Social Security benefits are taxable if the person files as an “individual” or the head of household and makes a combined income between $25,000 and $34,000. They will then need to pay income tax on up to 50% of their benefits. For those making more than $34,000, up to 85% of the benefits could be taxable, according to the Social Security Administration.
Combined income refers to the filer’s adjusted gross income plus nontaxable interest and half of their Social Security benefits.
If filers submit a joint return, and the combined income between the couple is between $32,000 and $44,000, the couple may have to pay income tax on up to 50% of their benefits. But married couples who live together and file separately will likely have to pay taxes, but it is not clear how much.
Supplemental Security Income, including disability payments, are never taxable.
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If a filer does have to pay taxes on their benefits, there are two ways to do it. Filers can submit quarterly estimated tax returns with the Internal Revenue Service, or they can ask Social Security to withhold federal taxes from their benefit payment.
If someone does not need to file their taxes, they can still choose to so they can receive a refund. If someone has made money during the year but does not meet the mandatory requirements to file taxes, they could still get a refund from the money that was federally taxed during the year.