When you received social security income, do you have to report it to the IRS?

Question

For a married couple that are 68 & 64 years old and have received 24K in Social Security benefits, 3k in pension distributions, and 2K in interest income,

is it required for them to file their taxes?
It was my understanding that SS income was not taxable, but im not too sure about the pension and interest income.

Can you please note where you got this information from?

there were no federal tax withheld from the 1099R.

Answer 1

If they are filing "married joint" and their "gross income" is less than $17,900 (since one is over age 65) , then they don't have to file a federal return. In this situation, it seems that their gross income is $5,000.(The gross income doesn't include the social security.) However, check and see if there is any federal withholding on the pension distribution (check the 1099-R) and the interest income. If there is, they need to file the return just to get back the withholding amount.

If they did have to file a federal return, the social security income would be reported on it even though it's usually not taxable.

Check on their state website to see if a state tax return needs to be filed. Often times, states have different filing requirements. My mother, age 90, doesn't have to file her federal return but must file a Pennsylvania return even though she owes no PA tax. !

Answer 2

If a married couple 68yr old and 64 yr old have only $5,000. in income and have not had any taxes withheld from a pension, etc. they don't need to file.

A married couple with one over the age of 65 can make $17,900. before they have to file a federal tax return for 2006
This does NOT include social security.
When both are over 65 the amount will go up around $1,000. and will increase for 2007.

some states may be different, but most won't require a return to be filed for that income and that age. If they have any federal or state tax withheld from the pension they would want to file to get a refund.

They should file a form 1040EZT to get a $40. telephone excise tax refund. It's a one time refund for 2006.

Answer 3

Up to 85% of social security income can be taxable, depending on what other income you have, but you should be fine and not owe or have to file. See Table 1-1 on page 5 of IRS Publication 17 for confirmation - be sure to read note ** which specifically says not to count social security income when following the table.

Answer 4

if there was nothing withheld for federal withholding from the social security, the pensions, and the interest income, then no they don't have to file. Their standard deduction, plus the extra they get for being >65, and also their personal exemptions would result in no federal taxable income, hence no tax.

Answer 5

Social Security is taxable if you have over a certain amount in other income. If the total of your taxable pensions, wages, interest, dividends, and other taxable income, plus any tax-exempt interest income, plus half of your Social Security benefits are more than a base amount, some of your benefits will be taxable. For 2006, the base amount is $32,000. The amount of your Social Security benefits that you must include in taxable income depends on the total of your income plus half of your benefits. The higher the total, the more benefits that must be included in taxable income. You may have to pay income tax on up to 85 percent of your Social Security.

If the folks you mentioned only got $5K besides Social Security and did not operate a business or sell any assets like stock, R.E., etc-they will owe no tax and no penalty would apply for non-filing. However, I would see if VITA does free returns for the elderly at your local library or community center and get them to file for your friends.

Answer 6

Unfortunately, yes they do. However, they would be able to use their standard deductions, go for the home heating credit, taxes they pay on a home (if owned) and also medical or prescriptions expenses over and above what is covered by medicare; any additional cost for 'other health insurance' in addition to medicare.

So, it's not a total loss. I feel for them because I cannot see paying taxes on an income that 'was' a tax 'from' their incomes when still working. I think it's a load, and that should be abolished. I don't believe it is right to pay a tax on a tax. That's like government 'double dipping', BUT it has always been that way.

Gather all their excess bills together and if I were them, I would go on-line with the IRS to file the tax return. It's free, and if there are any issues, the government is very willing to help out. I do mine on-line because I'm low income, and it serves me well to get them done for free. Then, they also offer the 'direct deposit' which is better than waiting for a check to arrive. I've always had mine within two weeks instead of waiting in line with the others to get a check in the mail. It's safer for them to get direct deposit as well.

Good luck and I hope this was some help.

Answer 7

Page 7 of pub 17 says that for a joint return, one person over 65, one under, they must file if they have an income of $17,900 or more not counting Social Security, assuming that they are not dependents.

If they are dependents, things are more complicated, see page 8.

Answer 8

i don't think your social security is taxable unless you make to much i don't know tha amount your ss department will tell you that call them i do know any back pay amounts are taxable i am almost sure your pension and interest will be but its not a large amount so you would't have to worry about having
to pay alot and if you do have to file include all your deductions any money you have given to any charity such as church clothes to the local salvation army any one living with you or do you send money any where to help out someone? its all deductible +all kinds of other deductions that any tax place can tell you about such as h&r block your best bet is still call your sosial security office and ask them if your still not sure about your pension and interest call h&r block or any one you prefer that does taxes and ask them hope this helped some

Answer 9

If half of your SS income + all of your other income is more than $32k (for 2006) part of your SS benefits will be taxable.

In your case it doesn't appear that it will be taxed.

Since you have more than $850 in unearned income you will need to file a tax return.

Answer 10

Social Security Disability Form : http://DisabilityHelp.siopu.com/?TRB