Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
For example, John(low income senior) has monthly social security income $500 and SSI $271 (SSI should not be on SSA-1099), what happen if he files tax return?
So his income is $6000 on the tax return form, it is below standard deduction, so no tax anyway.
But my main question is: Will SSA mistakenly consider the $6000 is earned from somewhere else? How can SSA know the $6000 is actually from SS retirement income? For example, if John reports income of $6000, then IRS reports the income $6000 to SSA for record purpose, will SSA know the $6000 is actually SS retirement benefit? Just in case SSA considers it as additional income and remove SSI.
For example, John(low income senior) has monthly social security income $500 and SSI $271 (SSI should not be on SSA-1099), what happen if he files tax return?
So his income is $6000 on the tax return form, it is below standard deduction, so no tax anyway.
But my main question is: Will SSA mistakenly consider the $6000 is earned from somewhere else? How can SSA know the $6000 is actually from SS retirement income? For example, if John reports income of $6000, then IRS reports the income $6000 to SSA for record purpose, will SSA know the $6000 is actually SS retirement benefit? Just in case SSA considers it as additional income and remove SSI.
Thanks.
He doesn't have 6k of taxable income. He is below the threshold for SS benefits to be taxable, so he has $0 of taxable income. Just sayin'.
And yes, the SSA-1099 mailed to the recipient is the recipient copy. The same information is submitted to the IRS.
He doesn't have 6k of taxable income. He is below the threshold for SS benefits to be taxable, so he has $0 of taxable income. Just sayin'.
And yes, the SSA-1099 mailed to the recipient is the recipient copy. The same information is submitted to the IRS.
This is not really what I am asking. Let me repeat my post and highlight my key questions in red.
For example, John(low income senior) has monthly social security income $500 and SSI $271 (SSI should not be on SSA-1099), so John files tax return with $6000 retirement income. In SSA's account, there is information about earned record (even before retirement, I guess the data is pulled from IRS yearly) , will IRS report the $6000 (from tax return form 1040) back to SSA and SSA considers it as earned record? If SSA considers John has $6000 earned record(SSA considers John made another $6000 from somewhere else last year), then SSA may decide to cancel his SSI.?
It is not that difficult.
I am not an accountant or a tax attorney, just an Anal/OCD member who did a lot of research on this subject when I applied for SS at age 62 and was still working full time.
In the scenario you posted above with $6000.00 earned income and $6000.00 of SS Benefits ($500.00 per month x 12 months), none of that income would be taxable.
1)WORKING AND COLLECTING SOCIAL SECURITY BENEFITS
You are allowed to work and collect SS benefits.
If you collect before full retirement age then you are limited on how much you can earn, for 2019 the amount you can earn is $17,640.00.
If you go over that threshold SS will withhold the overage the following year until it is repaid.
Once you hit Full Retirement Age there is no limit on earnings, you can earn as much as you like with no penalties.
2)FIGURING OUT IF ANY OF YOUR SOCIAL SECURITY BENEFITS MAY BE TAXABLE.
To figure out if any of your SS benefits are taxable use IRS Form 703 which is included with your SS 1099 form.
You enter your total amount of SS received on line 5A of Form 1040 and the Taxable Amount as figured from from Form 703 on Line 5B of Form 1040, if your SS is not taxable you will enter "0" on line 5B and any SS received that year will not be included in your Adjusted Gross Income.
For any part of your Social Security Benefits to be taxable if you are Single your total income of Wages, Interest, etc + 1/2 of your Yearly SS Benefit must be over $25,000.00.
If you are over that threshold then use IRS Form 915 to determine the amount of SS that would be taxable.
I worked until August of 2018 and received SS for the entire year and none of my SS was taxable.
I have already received my 2018 Federal Income Tax Return.
No, they will not think his $6000 SS income is earned income because when you file taxes with the IRS you attach your 1099 form which shows your income, and WHERE IT CAME FROM. The 1099 will indicate that the $6000 was from SS.
No, they will not think his $6000 SS income is earned income because when you file taxes with the IRS you attach your 1099 form which shows your income, and WHERE IT CAME FROM. The 1099 will indicate that the $6000 was from SS.
For example, John(low income senior) has monthly social security income $500 and SSI $271 (SSI should not be on SSA-1099), what happen if he files tax return?
So his income is $6000 on the tax return form, it is below standard deduction, so no tax anyway.
But my main question is: Will SSA mistakenly consider the $6000 is earned from somewhere else? How can SSA know the $6000 is actually from SS retirement income? For example, if John reports income of $6000, then IRS reports the income $6000 to SSA for record purpose, will SSA know the $6000 is actually SS retirement benefit? Just in case SSA considers it as additional income and remove SSI.
Thanks.
If your only income is SS and SSI, you have no taxable income and are not even required to file a tax return. The SSA and IRS already have all of your income info on file; the IRS doesn't need to "report" anything to the SSA.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
