Home Technology Social Security Benefits Recipients: Reasons to File Your Taxes in 2024 – CNET

Social Security Benefits Recipients: Reasons to File Your Taxes in 2024 – CNET

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Find out if you should submit a tax return this year, and why you might want to.
About 40% of recipients pay taxes on Social Security.
With tax season now four weeks in, the IRS has already processed more than 34.5 million returns. If you receive Social Security, you may not be required to file your taxes this year, but there may be a good reason to do so. 
Your age, marital status and how much income you earn outside of Social Security benefits all have an impact on whether you need to submit a tax return to the IRS. Even if you aren’t required to file, it might be a good idea if you want to receive refundable tax credits or a refund for income taxes you paid during the year. 
We’ll help you find out if you’ll need to file your taxes in 2024. For more, here’s why you want to hold on to that COLA letter you received last year. Also, here’s the maximum amount of Social Security money you can receive each month, how much of a COLA increase you should get and our picks for the best tax software.
Read more: File Early and Get Up to 20% Off Your 2023 Taxes With TurboTax
Your Social Security benefits may be taxable if one-half of your Social Security benefits plus all of your other income is greater than the base amount of your filing status (the base amount for determining tax liability) which is:
Other forms of income include wages, self-employment, interest, dividends and other reported taxable income
One way to understand whether your benefits are taxable is to consider gross income, which is your total earnings before taxes. 
You will need to file a return for the 2024 tax year:
Another way to understand whether your Social Security benefits are taxable is to look at combined income, which is your adjusted gross income + nontaxable interest + half of your Social Security benefits. 
On line 6b of Form 1040 or Form 1040-SR, you will report the taxable portion of your Social Security benefits. 
The biggest reason to file a tax return even if you don’t have to is to receive a tax refund. 
If you had federal tax income withheld from your pay or if you made estimated tax payments in 2023, you may want to file a tax return this year. You could receive a tax refund of any surplus withholding. 
Another circumstance where filing is encouraged is if you qualify for tax credits that provide you with refunds, including the earned income tax credit, the child tax credit or the child and dependent care tax credit. The earned income tax credit is fully refundable, meaning it goes toward your tax refund if you have no tax liability.
The Social Security Administration sends out a Social Security Benefit Statement by mail or online in January with your benefits from the previous year disclosed inside. The information in the statement provides you with the earnings you will disclose in your tax return if you end up filing one.
For more information on Social Security and tax season, here’s how to create an online IRS account.

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