We received social security benefits this year that were back pay for prior years. Do we refile our returns for prior years? Are the back benefits paid in this year for past years taxable for this year?
You must include the taxable part of a lump-sum (retroactive) payment of benefits received in the current year in your current year's income, even if the payment includes benefits for an earlier year.
Generally, you use your current year's income to figure the taxable part of the total benefits received in the current year. However, you may be able to figure the taxable part of a lump-sum payment for an earlier year separately, using your income for the earlier year. You can elect this method if it lowers your taxable benefits. Refer to Publication 915, Social Security and Equivalent Railroad Retirement Benefits, for a detailed explanation of the election and worksheets.
References:
- Publication 915, Social Security and Equivalent Railroad Retirement Benefits
- Tax Topic 423, Social security and equivalent railroad retirement benefits
In addition to Social Security benefits, I receive monthly benefits from the Canada Pension Plan. I am a resident alien. Are my Canada Pension Plan benefits taxable? How do I report them?
Benefits paid under the Canada Pension Plan (CPP), Quebec Pension Plan (QPP), and Old Age Security (OAS) program to a U.S. resident are taxable only in the United States. These Canadian benefits are treated as U.S. social security benefits for U.S. tax purposes. If your total income is above certain limits, a maximum of 85% of your benefits will be subject to U.S. tax. Any benefit under the social security legislation of Canada that would not be subject to Canadian tax if paid to a resident of Canada is not subject to U.S. tax.
Canadian benefits that are treated as U.S. social security benefits are reported on line 20a and 20b of Form 1040 or line 13a and 13b of Form 1040A.
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For an American citizen residing in Canada using Form 1040A, should taxable amount of social security benefits as shown on line 13b be $0.00 due to the Canada-U.S. tax treaty?
Under the 1997 protocol, the Canadian and US governments agreed to return to a residence-based system under which social security benefits are taxable exclusively in the country where the recipient resides. As a result, the entry for line 13b would be $0.00.
References:
In addition to U.S. Social Security, I also receive British Social Security. How should I report the British Social Security income?
According to the U.S.-United Kingdom treaty, social security income gets sourced to the country of residence. If you are a resident of the U.S. for tax purposes, the income would be reported and taxed in the U.S. You would not treat the income as U.S. social security benefits. The entire amount would be taxable as pension income on your U.S. tax return.
British social security received by a nonresident alien would not be taxable in the U.S. Also, a private British pension payment made to a nonresident alien for services performed outside the U.S. is not taxable in the U.S.
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Are Social Security benefits received from Austria and Germany treated like U.S. Social Security benefits? If not, how is it reported and under what kind of income?
Austrian social security benefits paid to a U.S. resident are taxable only by Austria and not also by the United States. German social security benefits paid to a U.S. resident are taxable only by the United States. These German benefits are treated like U.S. social security benefits. Refer to foreign employment contributions in Publication 575, Pension and Annuity Income.
References:
Is social security considered earned income?
Social security is not considered earned income. However, depending on your other earnings during the year, part of it may be taxable income.
References:
I retired last year, and started receiving social security payments. Do I have to pay taxes on my social security benefits?
Your social security benefits will not be taxed unless your adjusted gross income is generally equal to one half of your social security payments plus all your income from other sources.
If you are married and file a joint return, you must combine your incomes and your social security and equivalent tier 1 railroad retirement benefits when figuring the taxable portion of the benefits. The taxable amount of the benefits is figured on a worksheet in the Form 1040 or 1040A instruction book, or in Publication 915, Social Security and Equivalent Railroad Retirement Benefits. Refer to Tax Topic 423, Social Security and Equivalent Railroad Retirement Benefits, for base amounts, and additional information regarding taxability and reporting requirements.
References:
- Publication 915, Social Security and Equivalent Railroad Retirement Benefits
- Tax Topic 423, Social security and equivalent railroad retirement benefits
I am looking for the form you would use to find out how many quarters you've put in, and what your Social Security amounts would be and the varying ages of retirement, but I don't know the name. Can you help?
You need to contact the Social Security Administration at 800-772-1213 or check the Social Security Administration web site. They can give you the number of the form, tell you how to get the form, and answer your other questions concerning social security.
References:
Are social security disability benefits taxed just like social security retirement benefits?
There is no difference in the formula for determining the taxation of social security benefits - whether the benefits are age-related or disability-related, except social security benefits do not include supplemental security income (SSI) payments, which are not taxable.
References:
- Publication 915, Social Security and Equivalent Railroad Retirement Benefits
- Tax Topic 423, Social security and equivalent railroad retirement benefits
Is social security income paid to a disabled dependent child taxable income on the parent's return?
The income is reportable on the return of the person who has the legal right to receive the benefits. The social security benefits belonging to your dependent child must be added to your child's other income to see whether any of those benefits are taxable to the child. Whether the benefits are taxable will depend on the amount of benefits and amount of other income including interest or dividends.
References:
- Publication 915, Social Security and Equivalent Railroad Retirement Benefits
- Tax Topic 423, Social security and equivalent railroad retirement benefits
Are social security survivor benefits for kids considered taxable income?
The person who has the legal right to receive the benefits must determine whether the benefits are taxable. For example, if you and your child receive benefits, but the check for your child is made out in your name, you must use only your part of the benefits to see whether any benefits are taxable to you. The part that belongs to your child must be added to your child's other income to see whether any of those benefits are taxable to the child.
References:
- Publication 915, Social Security and Equivalent Railroad Retirement Benefits
- Tax Topic 423, Social security and equivalent railroad retirement benefits
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