Sometimes they are. Make sure you understand the IRS’s rules.
Do you receive social security benefits? Maybe you have retired and receive payments after working hard all your life. Maybe you are disabled and receive payments as a result of your injury.
Either way, the big question you probably have is whether or not your payments are taxable. How do you make that determination?
Amount of Benefits Received
At the end of the year, you should receive form SSA-1099. This will provide the amount of benefits paid out and any taxes withheld, as well as Medicare premiums deducted from your benefits. The Medicare premiums can be deducted as itemized deductions. You will use the benefits paid out to determine the amount of taxes you will owe. [MORE] . . .