Paying taxes to the IRS is one of the obligations that all United States citizens have. At least in most cases, since there are citizens who only collect Social Security who do not have to pay this every year. However, even in cases where it seems like there is no payment to be made, the opposite may be true, so we must be vigilant in everything we do financially.
If we earn money every month, whether from Social Security or another source of income, the IRS could make us pay taxes. Therefore, we must pay close attention to all income and all the rules that the Internal Revenue Service imposes on the monthly income of Americans. If we have to pay taxes and we do not do so, we could find ourselves in very serious economic problems.
Those who only collect Social Security should not worry too much when it comes to making the Tax Return. This is important to do, since doing the Tax Return is an obligation. After doing it the IRS will determine if we really have to pay taxes or not, but the first thing to do is to send all the documentation with the monthly income and other money that comes into our checking account.
Do I have to pay taxes to the IRS on my Social Security?
Each situation is individual and, therefore, we must look at it with caution at all times. If we keep in mind that every American must send the Tax return to the IRS every year, what we must do from there is to check if we have to pay taxes or not. What is almost certain is that we have to send the documentation. Paying taxes or getting a Tax Refund will depend on other factors.
Social Security checks may be taxable in some cases. If the total of half of the benefits plus the rest of the extra income (including outside tax interest) falls into one of these categories:
- If single: $25,000.
- Married or filing separately, having lived separately from spouse for the entire year: $25,000
- Married filing a joint return: $32,000
- Married filing separately having lived with spouse at some point in the previous attorney’s tax year: $0
With this information in mind we must calculate what taxes we will have to pay to the IRS. What is clear is that many of the Americans that do not have in mind to send the Tax Return will have to do it from seeing this information.
In the case that we do not know if we have to pay taxes or not, we have to seek help from an external financial advisor. In this case we must also be very careful, since there are scammers who try to take our money. If we seek help we must make sure that the advisor in question is registered within the IRS system.