As a recipient of Social Security benefits, you may not be required to file a tax return. However, it’s worth considering whether you should file anyway. The IRS has already processed over 101 million tax returns and issued nearly $201 billion in refunds as of April 6. If you meet certain qualifications, you could still be eligible for a refund this tax season.
Factors such as your age, marital status, and income outside of Social Security benefits can influence whether you need to file a tax return with the IRS. Even if it’s not mandatory, filing could be beneficial if you want to claim refundable tax credits or get a refund for income taxes you paid during the year.
We can assist you in determining if you need to file your taxes in 2024. Additionally, learn why it’s important to keep the COLA letter you received last year, the maximum amount of monthly Social Security benefits, the potential COLA increase, and our recommendations for the best tax software.
How can I determine if my Social Security benefits are taxable?
Your Social Security benefits may be subject to taxation if one-half of your benefits plus all other income exceed the base amount for your filing status, which is:
- $25,000 for single filers, heads of household, or qualifying surviving spouses.
- $25,000 for married individuals filing separately who lived apart from their spouse in 2023.
- $32,000 for married couples filing jointly.
- $0 for married individuals filing separately who lived with their spouse.
Other sources of income include wages, self-employment, interest, dividends, and other taxable income.
To determine if your benefits are taxable, consider your gross income, which is your total earnings before taxes.
You must file a return for the 2024 tax year if:
- You are an unmarried senior aged 65 or older with a gross income exceeding $14,700.
- You are filing jointly with a spouse aged 65 or older, and your gross income is over $28,700.
- You are filing jointly with a spouse under 65, and your gross income exceeds $27,300.
Another method to determine if your Social Security benefits are taxable is to calculate your combined income, which is your adjusted gross income + nontaxable interest + half of your Social Security benefits.
- If you are a single filer with a combined income between $25,000 and $34,000, you may need to pay income tax on up to 50% of your benefits.
- If you are a single filer with a combined income over $34,000, you may have to pay income tax on up to 85% of your benefits.
- If you are filing jointly with a combined income between $32,000 and $44,000, you may be required to pay income tax on up to 50% of your benefits.
- If you are filing jointly with a combined income exceeding $44,000, you might have to pay income tax on up to 85% of your benefits.
If you are married filing separately and did not live with your spouse last year, your Social Security benefits are taxed as if you were a single filer. If you are married and filing separately while living with your spouse, you may have to pay taxes on your benefits.
Report the taxable portion of your Social Security benefits on line 6b of Form 1040 or Form 1040-SR.
Should I file my 2023 taxes even if I’m not required to?
The primary reason to file a tax return, even if not mandatory, is to receive a tax refund.
If you had federal tax income withheld or made estimated tax payments in 2023, filing a tax return could result in a refund of any excess withholding.
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Another reason to consider filing is if you qualify for tax credits that provide refunds, such as the earned income tax credit, child tax credit, or child and dependent care tax credit. The earned income tax credit is fully refundable, meaning it can contribute to your tax refund if you have no tax liability.
How can I find my Social Security benefit amount for 2023?
The Social Security Administration issues a Benefit Statement by mail or online in January, disclosing your benefits from the previous year. This information will help you report your earnings in your tax return if you decide to file.
For more details on Social Security and tax season, learn how to create an online IRS account.
