Note: I’m not a tax expert nor do I collect SS, SSDI,etc…However, my brother is on SSDI & received Tax Form 1099-SM from SSA. Box 5 is the total amount you received in benefits ,which is usually how much you actually received in payments from the SSA, but may also include any Medicare Plan payments. That’s neither here or there for the purpose of our discussion. It’s only highlighted in RED so it catches your attention. If this is the first time you’ve ever received this 1099-SM (like my brother) then it can be for one of the following reasons:
#1. Your total benefits exceed the threshold for however you file your tax returns: If you file SINGLE the threshold is $25,000+. If you file JOINTLY, the threshold is $34,000+ **This DOES NOT MEAN YOU AUTOMATICALLY HAVE TO PAY TAXES ON THIS. That’s a whole different topic…
#2. If your below the above threshold’s & you received a 1099-SM, that usually means you received some other income for the 2024 Tax year. This income doesn’t need to be in the form of a W2. It could be in the form of Interest off an investment, capital gains, or even if a credit card company cancelled you after being in collections & sent you a 1099-C for the total balance on the c/c at the time the credit card company wrote it off as a loss.
If you have no other income coming in besides your SS, you should never have to pay taxes on it. BUT THAT DOESN'T MEAN YOU WON’T HAVE TO FILE TAXES. I know, it’s confusing. So, here’s my best advice: Tax all your tax documents to H&R BLOCK & they’ll walk you through it. Good Luck…
