CBS NEWS
We’re well into 2023 now, and that means tax filing day (April 18) is quickly approaching. If you’re like many Americans, you’re probably preparing to file your returns and anxiously awaiting that tax refund.
Unfortunately, many taxpayers could see smaller refunds this year thanks to recent tax changes. If you’ve recently started getting Social Security benefits, that could also influence your tax burden, not to mention the refund you’re eligible to receive.
Did you receive Social Security benefits in 2022? Then there’s important information you should know about filing your returns. You can get your taxes done right – and receive a maximum refund – by clicking here now.
Who does (and doesn’t) pay taxes on Social Security?
Whether you’ll pay federal taxes on Social Security depends on your tax filing status and your “combined income.” This is any tax-exempt interest you earned throughout the year, plus half your Social Security benefits and your adjusted gross income.
What does gross income include, exactly?
“Some examples include wages, self-employment income, interest, dividends, and other taxable income,” says Danielle Grimes, principal at accounting firm PKF O’Connor Davies.
Once you add up all these numbers, the rest depends on the total and how you file taxes. See the chart below for more guidance:
Tax Filing Status
Combined Income
Amount Taxed
Individual
< $25,000
No taxes
Individual
$25,000-$34,000
50% of your SS benefits
Individual
> $34,000
85% of your SS benefits
Married, filing jointly
< $32,000
No taxes
Married, filing jointly
$32,000-$44,000
50% of your SS benefits
Married, filing jointly
> $44,000
85% of your SS benefits
According to the Tax Foundation, there are also 13 states that tax Social Security benefits to some extent. Talk to an accountant and see if your state taxes Social Security — and what it might mean for your tax bill if it does…