If you, or someone you know, receive Social Security benefits or will receive them soon, here are a few tips for you to remember.
First, if your only source of income is Social Security, then your benefits will not be taxable and you should not have to file an income tax return.
However, if you have other sources of income in addition to Social Security, then a portion of your Social Security benefits will be taxable. The taxable amount is determined by the amount of income from your other sources of income. But, the maximum taxable amount is 85% of your Social Security income.
In order to report your Social Security benefits on your income tax return, you should receive a Form 1099-SSA from the government. If you or someone you know is having tax issues, we can be reached at Hoorfarlaw.com or 816-524-4949.