Social Security Update:
Income Taxes and Social Security benefits
By Daniel Moraski
If you receive Social Security benefits, you should have received your Social Security Benefit Statement or Form SSA-1099 by the end of January.
Beneficiaries will need this 1099 Benefit Statement to complete their federal income tax return and to find out whether their benefits are subject to income tax. Generally, you have to pay taxes on your Social Security benefits if your total annual income is more than $25,000 as an individual or $32,000 for a couple. Less than a third of beneficiaries pay taxes on their benefits.
The Benefit Statement shows the gross amount of benefits that were due and the net amount of benefits paid. The 1099 also shows the amount of any payments (such as Medicare premiums) that were withheld.
The 1099 Benefit Statement should not be confused with the Social Security Statement, which is mailed to all workers age 25 or older not yet receiving benefits and gives an estimate of future benefits available. The 1099 Benefit Statement, mailed in January, reports the amount of benefits a person has received in the past year.
Benefit Statements are only sent to individuals who received Social Security benefits in the prior year, so you will only receive one if you were paid Social Security benefits in 2006. People who get Supplemental Security Income (SSI) do not receive Benefit Statements, since SSI is based on need and is not considered taxable income.
If you received Social Security benefits in 2006 and you did not find a Social Security Benefit Statement in your mailbox by January 31, or if you need a replacement copy, you can request one online by visiting our website at www.socialsecurity.gov/onlineservices. Or you can call Social Security’s toll-free number, 1-800-772-1213 (TTY 1-800-325-0778).
For more information on taxation of Social Security benefits, call the Internal Revenue Service’s toll-free number, 1-800-829-3676, to ask for Publication 554, Tax Information for Older Americans.
Daniel Moraski is the Social Security Administration Public Affairs Specialist in Springfield Massachusetts.
