“Internal Revenue Service” by saturnism is licensed under CC BY-SA 2.0
Taxpayers receiving Social Security benefits may have to pay federal income tax on a portion of those benefits. Social Security benefits include monthly retirement, survivor, and disability benefits. They don’t include supplemental security income payments, which aren’t taxable.
The portion of benefits that are taxable depends on the taxpayer’s income and filing status.
To find out if their benefits are taxable, taxpayers should take half of the Social Security money they collected during the year and add it to their other income. Other income includes pensions, wages, interest, dividends, and capital gains.
Gather your records: Round up any documents you will need when filing your taxes, including receipts, canceled checks and other documents that support income or deductions you will be claiming on your tax return. Store them in a safe place.
Report all your income: You will need all your Forms W-2, Wage and Tax Statements, and 1099 income statements to report your income when you file your tax return. To ensure you don’t misplace them, add them to your other records.
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Get answers to questions: Use the Interactive Tax Assistant tool available on the IRS website to find answers to your questions about tax credits and deductions.
Tax forms are due in four days and, yes, some of us, haven’t even started.
And there are a lot more questions this year than in some years past because of the increased unemployment payments; the stimulus checks; the child tax credits.
Raphael Tulino with the IRS told KNPR s State of Nevada that despite those challenges it is more important than ever to file an accurate tax return this year.
“The COVID environment has the IRS spread pretty thin,” Tulino said, “If you think about the last 15 months or so… we’ve had four enormous pieces of legislation to interpret and issue guidance on, two tax filing seasons, which themselves make us quite busy in terms of interaction with taxpayers, and then we’ve had three rounds of economic impact payments.”
“Internal Revenue Service” by saturnism is licensed under CC BY-SA 2.0
WASHINGTON The Internal Revenue Service today reminded taxpayers to check their tax returns for common errors that could delay refunds or otherwise affect normal processing. Here are some ways to avoid tax return slipups as the May 17 due date gets closer.
Use electronic filing. Filing electronically, whether through IRS Free File or other e-file service providers, is a great way to cut the chances for many tax return mistakes and maximize deductions to reduce tax owed at the same time. The tax software automatically applies the latest tax laws, checks for available credits or deductions, does the calculations, and asks taxpayers for all required information.
Millions of Americans are expecting a tax refund. Many will use it on things like bills, debt and other essentials. If you donât have any pressing financial matters to pay for at the moment, you may look at investing it in your future. PennyGemâs Johana Restrepo has more.
Q: Can you get us an update on when we might expect our NC State tax refund? We submitted our tax digitally March 5 and have checked the NCDOR web site with no adequate explanation. This is unacceptable and irresponsible for us to not have our refund yet.
â C.W.
Answer: Schorr Johnson, the director of public affairs for the N.C. Department of Revenue, said that