Reporting social security

[jyeh74]

Do you have to report SSA-1099 only if it is over a certain amount ?  For married filing separately vs married filing jointly?

[CatinaT1]

If you are filing a return, you must report the SSA-1099. If your only income is from Social Security, you are not required to file a return.

[Bsch4477]

If you have a filing requirement you must report your social security. How much you will be taxed on it depends on your other income and filing status. 

[xmasbaby0]

You enter ALL of your combined income on a joint return including Social Security.  And if you file separate returns, the spouse who received SS will be paying  MORE tax on that SS on their separate return.

You need to file a federal return if half your Social Security plus your other income is $25,000 when filing single or head of household, or $32,000 when filing married filing jointly, $0 if you are filing married filing separately.

Go to Federal> Wages & Income>>Retirement Plans and Social Security  (SSA1099 and 1099RRB) to enter your SSA1099.

If you were legally married at the end of 2023 your filing choices are married filing jointly or married filing separately.

Married Filing Jointly is usually better, even if one spouse had little or no income. When you file a joint return, you and your spouse will get the married filing jointly standard deduction of $27,700 (+$1500 for each spouse 65 or older)  You are eligible for more credits including education credits, earned income credit, child and dependent care credit, and a larger income limit to receive the child tax credit. 

If you choose to file married filing separately, both spouses have to file the same way—either you both itemize or you both use standard deduction. Your tax rate will be higher than on a joint return.

 Some of the special rules for filing separately include: you cannot get earned income credit, education credits, adoption credits, or deductions for student loan interest. A higher percent of your Social Security benefits wiil be taxable. Your limit for SALT (state and local taxes and sales tax) will be only $5000 per spouse. In many cases you will not be able to take the child and dependent care credit. The amount you can contribute to a retirement account will be affected. If you live in a community property state, you will be required to provide additional information regarding your spouse’s income. ( Community property states:  AZ, CA, ID, LA, NV, NM, TX, WA, WI)

 If  you are using online TurboTax to prepare your returns, you will need to prepare two separate returns and pay twice since with online, you get one return per fee.

https://ttlc.intuit.com/questions/1894449-married-filing-jointly-vs-married-filing-separately

https://ttlc.intuit.com/questions/1901162-married-filing-separately-in-community-property-states

https://ttlc.intuit.com/questions/1894449-is-it-better-for-a-married-couple-to-file-jointly-or-separ...

[jyeh74]

The couple is filing married filing separately.  They have no other income other than SSA. So they have to report SSA because married filing separately over 0?  

[xmasbaby0]

@jyeh74 If their ONLY income was Social Security they are not required to file a tax return at all unless they have a 1095A for marketplace insurance.  No need to file jointly or separately if SS is the only income

Who has to file?

http://www.irs.gov/uac/Do-I-Need-to-File-a-Tax-Return%3F

[jyeh74]

Not sure if this matters, but they also are claimed as a dependent. 

To correct, they don’t file married filing separately because they do not have any other income other than SSA income to report.  Their other income outside of SSA is zero.  They get claimed as dependents.

[jyeh74]

@xmasbaby0 thank you for clarifying that they do not need to file taxes since SSA is their only income.  What is 1095A?  I have never heard of marketplace insurance.  I’m guessing they do not have this but will check.

[xmasbaby0]

@jyeh74 marketplace insurance ---aka "Obamacare" or also health insurance from healthcare.gov.

[jyeh74]

@xmasbaby0 does the 1095A have to be over a certain amount to have to report taxes?

ok what about things like 1099-INT or 1099-DIV That’s considered extra income?  If so, what’s the threshold or amount that would be reportable?

[xmasbaby0]

@jyeh74 Okay---now you are changing it up.  First you said no other income.   Please refer to the link for the IRS "Who has to file" and to the other information that was provided:

You need to file a federal return if half your Social Security plus your other income is $25,000 when filing single or head of household, or $32,000 when filing married filing jointly, $0 if you are filing married filing separately.

[jyeh74]

@xmasbaby0 I thought there was no other income other than SSA.  But they think they get 1099-INT of $15-20 a year.  

[jyeh74]

Doesn’t make sense that married filing jointly is $32,000 but if filing separately is anything over 0

[xmasbaby0]

$15 or $20 a year?  Forget it.  They do not have to file.    Is this for your parents?  Or someone else you are helping?

[xmasbaby0]

@jyeh74 Haha!   Congress has written lots of tax laws that do not make sense to people.    But that law prevents married couples from avoiding tax they might owe if only one spouse is on SS.   The tax laws for filing married filing separately are very strict.