Seniors with other sources of income, such as wages, interest, dividends, or capital gains must file a return if their total income exceeds the IRS filing threshold for their filing status.
RETURN
Seniors who are self-employed or own businesses may need to file a tax return even if they are not making a profit.
SELF EMPLOYED
The program is primarily funded through payroll taxes, and benefits are typically paid out in the form of monthly payments.
PAYROLL
Seniors who receive pension or annuity payments may need to report those payments on a tax return and pay taxes on them.
ANNUITY
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paying taxes on your social security benefit may allow you to deduct some of your living expenses.
EXPENSES
In general, the more income that you have, the more tax you will pay on your benefits.
INCOME
Individuals filing a Federal tax return with a combined income exceeding $25,000 may be subject to taxes on up to 85% of their Social Security benefits.
85%
Individuals are obligated to declare any social security benefits received when filing their annual tax returns. In addition to the benefits, taxpayers must include all supplemental financial information such as income and deductions.
OBLIGATION
Taxpayers seeking to minimize the amount of tax paid on Social Security benefits may wish to consider strategies such as investing in Roth IRAs, withdrawing taxable income prior to retiring, and purchasing an annuity.
STRATEGIES
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