How to File Social Security Benefits on Income Taxes

Learn about federal taxes and Social Security.

For most, the Social Security benefits that they receive each year are considered income and are thus taxable. The current federal tax code states that the IRS will never tax more than 85% of the total Social Security income, but within this percentage taxpayers must still report their Social Security benefits. Fortunately, the Social Security Administration and the IRS both make the process simple with readily available forms. With these forms to hand, you will have no trouble filing your Social Security benefits on your income taxes.

Things You'll Need

• Social Security Benefits Statement (Form SSA-1099)
• IRS Form 1040 or 1040A
• Tax worksheet (available with Forms 1040 or 1040A)

Instructions

1. Review your income to determine the percentage of your Social Security benefits that are taxable. For most filers, at least a portion of their Social Security income is taxable. For those who file as individuals and have earned between $25,000 and $34,000, they will be required to pay taxes on up to 50% of the Social Security benefits. Over $34,000, the taxation is 85% of Social Security benefits. If you are unsure, the Social Security Administration provides a worksheet to see whether or not the benefits are taxable and determine which benefits are taxable.

2. Review your Social Security Benefits Statement (Form SSA-1099). The Social Security Administration makes this form available to taxpayers each year. In fact, the form is mailed out at the end of each January, so taxpayers should receive it by the middle of February at the very latest. If you do not receive it, you may go to Social Security Administration's website, at www.socialsecurity.gov (or www.ssa.gov), to request a replacement form.

3. Report the Social Security benefits when filing your income taxes. On Form 1040, locate lines 20a and 20b, and then find box 5 of Form SSA-1099. Report the net benefits of box 5 on line 20a and the taxable portion of the Social Security income on line 20b. If you are using IRS Form 1040A, follow the same instructions from box 5, but instead report the net benefits on line 14a and the taxable Social Security income on line 14b. In the event that you are using Form 1040EZ, you will not have to report Social Security benefits.

Tips & Warnings

• The Social Security Administration provides the option to allow taxpayers to pay the tax quarterly or to authorize the SSA to withhold the taxes from the benefits statement. Most taxpayers do not use these options, but if you want to, the SSA provides Form W-4V online. Taxpayers can also call the SSA directly to arrange for withholding.

References

• Social Security Administration

Resources

• IRS Form 1040 or 1040A
• Social Security Adminstration Worksheet