Here is some helpful information regarding taxes provided by our Operations Manager, Lauren Ward:
Some people have to pay federal income taxes on their Social Security benefits. This usually happens only if you have other substantial income (such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return) in addition to your benefits.
If you:
-
File a federal tax return as an “individual” and your combined income* is
-
Between $25,000 and $34,000, you may have to pay income tax on up to 50% of your benefits

- More than $34,000, up to 85% of your benefits may be taxable
-
Between $25,000 and $34,000, you may have to pay income tax on up to 50% of your benefits
-
File a joint return, and you and your spouse have a combined income* that is
- Between $32,000 and $44,000, you may have to pay income tax on up to 50% of your benefits
- More than $44,000, up to 85% of your benefits may be taxable
- Are married and file a separate tax return, you probably will pay taxes on your benefits
*Note: Your adjusted gross income
+ Non taxable interest
+ ½ of your Social Security benefits
= Your “combined income”
Each January the client will receive a Social Security Benefit Statement (Form SSA-1099) showing the amount of benefits he/she received in the previous year. The client can use this statement when they complete their federal income tax return to find out if his/her benefits are subject to tax.
Social Security has no authority to withhold state or local taxes from your benefit. You should contact your state or local taxing authority for more information.
You can also call the IRS toll-free at 1-800-829-3676 or go to IRS.gov
You can ask Social Security to withhold federal taxes from your Social Security when you apply for benefits.
If you already receive benefits or if you want to change or stop your withholding, you’ll need a form W-4V from the IRS. You can call the IRS and ask for Form W-4V, Voluntary Withholding Request.
When you complete the form, you will need to select the percentage of your monthly benefit amount you want withheld. (Flat dollar amounts are not accepted)
The completed form will need to be sent to your local SSA office.
Self employment and Social Security Tax
Self employed people must report their earnings and pay taxes directly to the IRS. Earnings for Social Security are reported to IRS when you file your federal income tax return. You must report your earnings on IRS Schedule SE for Social Security coverage purposes if your net earnings are $400 or more in a taxable year, in addition to the other tax forms you must file.
The Social Security tax rate for 2011 is 13.3% on self employment income up to $106,800.
Q: I am receiving Social Security Disability and I received a tax form wanting to know which doctor declared me disabled and wanting my doctor’s signature. What do I do?
A: They will need to contact their local SSA office and SSA will give them the name and doctor they need to contact. (The tax agency tells the client to contact us)
Q: If I received my back pay check in 2010 and it was back pay for the previous 3 years, will I be responsible for paying taxes on all 3 years at one time?
A: Your tax agency can do an amendment to previous years’ tax returns so that you will not be penalized all at one time. Please see article from IRS.gov below:
From IRS.gov
Lump-sum payment reported on Form SSA-1099 or RRB-1099. If you received a lump-sum payment in 2010 that includes benefits for one or more earlier years after 1983, it will be included in box 3 of either Form SSA-1099 or Form RRB-1099. That part of any lump-sum payment for years before 1984 is not taxed and will not be shown on the form. The form will also show the year (or years) the payment is for. However, Form RRB-1099 will not show a breakdown by year (or years) of any lump-sum payment for years before 2008. You must contact the RRB for a breakdown by year for any amount shown in box 9.





Finally, the most asked question is how much the benefit amount will be. Let’s just say that no two snowflakes are alike. The amount you or a loved one could receive is determined by the amount of time the deceased worked and the amount he or she paid into Social Security. In other words, the longer an individual works and the more money paid into Social Security, the benefit amount has the potential to be significantly higher as well. But of course this is only one factor. The Administration will also factor in the beneficiaries’ circumstance which is outlined in the next paragraph.









knows.
he next six blogs I will be providing some specific examples of limitations in each domain to help you better understand what must exist and be documented to prove your child disabled.
ological reports, and notes from teachers regarding behavior and discipline, doctor’s records, mental health treatment records and even a journal of anything you think may be considered significant. The SSA relies upon school records and treating sources to evaluate these areas of concern.





