People who want to take advantage of Social Security benefits at the time of their retirement might have to pay income taxes on some types of benefits. For example, if you want to apply for disability or survivor benefits through the Social Security Administration (SSA), then the Internal Revenue Service (IRS) dictates that you will likely have to pay some income tax on those funds.
However, some Social security benefits are not taxable, such as payments related to Supplemental Security Income (SSI). Whether you will need to pay taxes may depend on various factors, such as your wages, pensions, capital gains, and dividends: It is estimated that most people need to pay taxes for about 50% of their benefits when they lie in the range of $25,000 to $34,000.
For married couples in which at least one of the spouses seeks Social Security disability benefits, then the criteria regarding tax obligations may differ.
In the couple’s pension, wages, capital gains, and dividends including half of each of the partner’s Social Security is between $32,000 to $44,000, then they will have to pay out taxes on 50% of their income gained from Social Security.
According to the SSA, nearly 56% of the recipients who are getting Social Security benefits pay income taxes on their income.
Couples who are married and apply on a separate basis for Social Security benefits are required to abide by similar regulations to individuals. If you are a widow or widower or head of your household, then you likely have to follow the same procedure as for individual taxpayers.
If a child is receiving benefits under a Social Security program or survivor benefits, then that financial assistance will not be included in their taxable income if it does not meet the threshold for individuals.
To pay any other tax on your income, people can file a quarterly tax return with the IRS. You can request additional information from the Social Security Administration regarding your tax liability on the benefits you collect.
However, if you are unsure about what kinds of taxes you may owe it is advisable to seek guidance from:
You can get help on tax payments relating to Social Security benefits by consulting with these professionals. It is a good idea to protect yourself when you are collecting the benefits you need.
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