I have a friend that receives Social Security Benefits and SSI, she is tring to get back in tothe workforce. She has started working in August. She is going to file in Jan. and she is not sure if she should file the W2 and the 1099(from Soc. Sec. and SSI) she also has two children as dependants. Will filing the 1099 result in her getting more back in a refund?
2007-12-12 03:55:38 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
The SS she receives may be taxable, she should consult a tax preparer in her area.
Phurface
2007-12-12 03:59:39 · answer #1 · answered by Phurface 6 · 0⤊ 0⤋
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2016-10-08 14:51:15 · answer #2 · answered by Brandy 3 · 0⤊ 0⤋
There are 3 typical benefit programs run by Social Security -- Social Security Retirement (SSR), Social Security Disability (SSD) and Supplemental Security Income (SSI). Of the 3, only SSI is tax free in all cases. If you receive SSR or SSD, up to 85% of that MAY be subject to tax. You take 1/2 of your SSR or SSD and add ALL other income (except SSI) to it. If the total exceeds $25,000 for a Single taxpayer or $32,000 for a couple filing Married Filing Jointly, or $0 for a taxpayer filing Married Filing Separate then up to 85% of the SS benefits may be taxable.
If she elected to have income taxes withheld form her SS benefits she will need to file that 1099 with her tax return so that she'll get credit for the taxes withheld even if the benefits are not taxable as described above. If none of the benefits are taxable as described above and no tax was withheld from the SS benefits, there's no need to claim it on her return. It isn't taxable and won't have any effect on her tax liability or any refund that she may be due.
2007-12-12 04:25:45 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
No, she won't get back more money by filing the 1099. But depending on her total income, she might or might not have to show the 1099 on her return - probably not, unless her W-2 total plus half of her social security was over $25,000 for the year. If it is, then part of the social security might be taxable.
SSI isn't reported in any case, and is not included on the 1099.
2007-12-12 04:18:25 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
Remind your friend that if she's getting wages, this was a change in income and she was supposed to report to the SSA back when she started work. The amount of income she had affects her eligibility to even receive SSI:
When to report a change
You must report a change within 10 days after the month it happens. You should report a change even if you are late.
If you do not report a change, you may miss out on money you need if the change means you should receive a greater amount. Or, you may get too much money and have to pay it back.
If you do not report a change or if you make a false statement and get money that you are not due, Social Security will make you pay back the money. It also can result in a fine, sanction or imprisonment.
2007-12-12 04:35:41 · answer #5 · answered by Anonymous · 0⤊ 0⤋