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Skip To Main Content. When Social Security benefits may be taxable When determining whether you need to file a return and you receive Social Security benefits, you need to consider tax-exempt income because it can cause your benefits to be taxable even if you don't have any other taxable income. To figure out if your Social Security benefits are taxable: Add one-half of the Social Security income to all other income, including tax-exempt interest.
Then compare that amount to the base amount for your filing status. If the total is more than the base amount, some of your benefits may be taxable. Income thresholds for taxpayers 65 and older are higher If you are at least 65 years old, you get an increase in your standard deduction. You also get an increased standard deduction if: You are blind Or your spouse is also at least 65 Or if your spouse is blind The largest standard deduction would be for a married couple that are both blind and both over 65 years old.
When a dependent child or adult may need to file a tax return Taxpayers who are claimed as a dependent on someone's tax return are subject to different IRS filing requirements, regardless of whether they are children or adults.
When you may want to submit a tax return to claim a tax refund With all the above being said, there are years when you might not be required to file a tax return but may want to. The IRS doesn't automatically issue refunds without a tax return, so if you want to claim any tax refund due to you, then you should file one.
All you need to know is yourself Just answer simple questions about your life, and TurboTax Free Edition will take care of the rest. Looking for more information? Low or even moderate earnings, coupled with having children, make families eligible for the earned income tax credit and the child tax credit which often reduce tax liability to zero—or even result in a payment from the government. Other low-income workers frequently face layoffs or may work seasonal or intermittent jobs, resulting in tax liability one year and none the next.
That panel has some problems—for example people in the survey are now older than the overall US population—but the basic story still holds. The 47 percent number came to take on a bigger, symbolic meaning: Nearly half of Americans live their lives taking government benefits but contributing nothing.
Fullerton and Rao show that while that image is politically enticing for some, it simply is false. This is a BETA experience.
You may opt-out by clicking here. More From Forbes. Nov 11, , pm EST. Among those who receive some government support in one year, 60 percent will get a transfer in the following year. But five years later, only about one-in-five still will be getting benefits.
And after 10 years, only about 12 percent still get benefits. The tax story Fullerton and Rao tell squares with what careful researchers have known for a long time. Nearly half of those paying no federal income tax are retirees living on Social Security benefits. Many others worked but made too little to pay federal income tax. Nonetheless, they still paid sales taxes, payroll taxes, and perhaps state income taxes.
For their part, low-income working age people often are in and out of the workforce. Women may work--and pay income taxes--until they have a child. Then, they may stop paid work or work part time.
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