Whether or not your Social Security income is taxable depends on your total income, including your Social Security plus any other income. Generally speaking, if your only income is Social Security, you probably don't make enough money to be required to file a federal tax return.
For those with additional sources of income, the key figure is the Modified Adjusted Gross Income (MAGI). The MAGI includes half of your Social Security, plus other sources of income. Once your MAGI exceeds the base amount for your filing status ($32,000 for Married Filing Jointly, otherwise $25,000), at least part of your Social Security income becomes taxable. The taxable portion of your Social Security income increases once you reach additional MAGI threshholds.
To determine if your Social Security income is taxable, all you need to do is enter that income – See Where do I enter an SSA-1099, SSA-1099-SM, or SSA-1099-R-OP1? TurboTax does the rest!
At the state level, many states exempt Social Security from taxation, either partially or completely. Again, if your sole income is from Social Security, it's likely you don't need to file a state return either.
TurboTax will automatically figure out whether you need to pay federal and/or state taxes on your Social Security income. Just enter your SSA-1099 information in TurboTax and we’ll let you know!
My only income is SSI and it is below the Federal limit to file. My question is, do I have to file a Maryland tax form as I live in Maryland?
Thank you for your response
@Troop2014 If your only income is Social Security you do not have to file a federal or MD return. MD does not tax Social Security.
No. Supplemental Security Income (SSI) is not taxable income to Maryland, they also do not tax social security income. The IRS does not tax SSI. If you have no other taxable income then you are not required to file a tax return for 2021.
If you did not receive your third economic impact payment (3EIP) of $1,400 early last year, then you may want to file to receive this final stimulus payment.
@Troop2014