Social Security Taxes

[tagteam]

Do you have a question?

[Cate9]

Hi sandy4083!

Thanks for participating in our Ask the Experts: Retirement/Life Events session.  If you have a specific question, please post a reply and I will get you an answer.  However, in the meantime, I have provided you with a brief outline of how social security income is taxed. 

Some of you have to pay federal income taxes on your Social Security benefits. This usually happens only if you have other substantial income in addition to your benefits (such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return).

You will pay tax on only 85 percent of your Social Security benefits, based on Internal Revenue Service (IRS) rules. If you:

• file a federal tax return as an "individual" and your combined income* is
  • between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits.
  • more than $34,000, up to 85 percent of your benefits may be taxable.
• file a joint return, and you and your spouse have a combined income* that is
  • between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits.
  • more than $44,000, up to 85 percent of your benefits may be taxable.
• are married and file a separate tax return, you probably will pay taxes on your benefits.

https://www.ssa.gov/benefits/retirement/planner/taxes.html#:~:text=between%20%2425%2C000%20and%20%24....

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[sandy4083]

Yes, I have a question. I am 82 years old, own my own home, have received bond interest, etc that I have reported in the past. I am always had my taxes done by AARP, since I volunteered there in various capacities. I have always used my federal return money to pay my personal property taxes since my home is paid off. I volunteered with the AARP Tax Return Program & was told that I didn’t need to have taxes withheld at my age, but I used the Federal Return money for my personal property taxes, as stated above, I used Turbo Tax for the 2022 year since I don’t volunteer with AARP anymore. I filed the Turbo Tax form online for 2022 & received a submission reply on January 27, 2023.  I have not received my Federal tax return money that was withheld from my Social Security benefits check. I was asked to fax my Form 1099 Social Security form for 2022, which I did on February 27,2023.  I have called the IRS & Turbo Tax repeatedly but I get a message that my 2022 taxes are still being investigated. I am still receiving Social Security checks with taxes withheld. What is your professional opinion on what I do next?
Sorry for such a long reply question.

[tagteam]

TurboTax (Intuit) Support cannot be of much assistance to you at this point so your best bet would be to continue to contact the IRS.

There is also the Taxpayer Advocate Service.

See https://www.taxpayeradvocate.irs.gov

[Cate9]

Hi Sandy!  Thanks for the reply.  As previously posted, the Taxpayer Advocate service can help you get results from the IRS.  You may even have a local office that you can use.  You can find them at this link. https://www.taxpayeradvocate.irs.gov/contact-us/#FindlocalTAS

It does sound like you could use some tax advice about whether or not you need to continue to have federal withholdings taken from your social security payments.  If you would like, you can call TurboTax and one of our experts can look over your 2022 tax return to better assess whether you should have to file at all. I understand you use the refund to pay your property taxes, but, using the IRS as a savings account can cause you delays in accessing your money.  As you currently see!  Some states also have a property tax credit program for low income seniors that you may benefit from as well.  That usually does not require a tax return and can be filed directly with the state. I hope this helps.  

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