Taxes on Social Security

Hi, 

 

Here is a social security administration article regarding your question:

https://www.ssa.gov/manage-benefits/request-withhold-taxes 

You will pay federal income taxes on your benefits if your combined income (50% of your benefit amount plus any other earned income) exceeds $25,000/year filing individually or $32,000/year filing jointly.

 

Here is another article that will help you decide if you want the taxes taken out from your monthly benefits:

https://turbotax.intuit.com/tax-tips/retirement/when-does-a-senior-citizen-on-social-security-stop-filing-taxes/L53Hx1v9W 

As long as you are at least 65 years old and your income from sources other than Social Security isn't high, then the tax credit for the elderly or disabled can reduce your tax bill on a dollar-for-dollar basis.

For the 2022 tax year,

• If you are married and file a joint return with a spouse who's also 65 or older, you'll need to file a return if your combined adjusted gross income is $28,700 or more.
• If your spouse is under 65 years old, then the threshold amount decreases to $27,300.
• Keep in mind that these income thresholds only apply to the 2022 tax year, and generally increase slightly each year.

 

Thank you,

John

CPA

Hi @022804   thank you for joining us today for our TurboTax Live Event.  

Our Tax Expert, @Jackstar221, has answered your question and provided great resources regarding your social security income and withholding taxes.  

If you have a 2023 tax liability and do not have withholding from your social security you can set up an IRS Online account and pay estimated taxes, see link below.  

https://www.irs.gov/payments/your-online-account

 

Also provided is the TurboTax Calculator to determine your estimated 2023 income and tax liability.

https://turbotax.intuit.com/tax-tools/

 

Hope the additional resources were helpful.  Please reach out if you have additional questions.

Thanks for using TTLive!

Bonnie, TTLive Tax Expert

Hi @022804 I also wanted to add the 2023 tax brackets for your convenience.

2022 and 2023 Tax Brackets:

https://turbotax.intuit.com/tax-tips/irs-tax-return/current-federal-tax-rate-schedules/L7Bjs1EAD

 

Please reach out if you have any additional questions.  Thanks again for joining the TTLive Event!

Bonnie, TTLive Tax Expert

To add to this discussion, another great tool to estimate if withholding is needed is provided by the IRS, the "Tax Withholding Estimator." This tool factors in a large number of variables including other sources of income, dependents, and year to date withholding to determine how much more withholding you'll need.

 

Please head to the following link for the IRS Tax Withholding Estimator - https://www.irs.gov/individuals/tax-withholding-estimator

 

Thank you,

 

Ruth, CPA, Attorney