Social Security benefits for tax reporting - will my January payment count for 2024 or 2025 taxes?
I started collecting Social Security retirement this year and need help figuring out the tax reporting aspect. My monthly benefit is $2,786 and I'll receive payments for September, October, November, and December 2024. From what I understand, my December payment will arrive on January 8th, 2025 (second Wednesday). For tax purposes, do I report just the 4 months of payments ($11,144) on my 2024 taxes? And then the January payment goes on 2025 taxes even though it's technically my December benefit? I'm trying to make some year-end financial moves and don't want to miscalculate my taxable SS income. I've heard conflicting things from friends and want to be sure.
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Abigail Spencer
You've got it right! Social Security benefits are reported for tax purposes based on when you RECEIVE the payment, not when they're for. So for 2024, you'll report the payments you actually received during calendar year 2024 (Sept-Dec, but only the ones that hit your account in 2024). The December benefit that arrives in January 2025 will be reported on your 2025 taxes. The SSA will send you a Form SSA-1099 in January that shows the exact total of benefits paid to you during 2024. This is the amount you'll use when filing your 2024 taxes.
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Anita George
•Thank you so much! That's a relief to know I was understanding it correctly. Do you know approximately when the SSA-1099 form typically arrives? I like to file my taxes early.
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Logan Chiang
ur overthinking this lol. just wait for the 1099 form they send you in january, it'll have the exact amount you need to put on your taxes. the SSA calculates it all for you
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Anita George
•Thanks - I know the 1099 will have the final numbers, but I'm trying to plan some year-end tax moves now in December and need to estimate my taxable income accurately.
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Isla Fischer
The previous responder is correct about Social Security benefits being taxed in the year you receive them. This is known as the "constructive receipt" principle in tax law. What you should also consider is whether your Social Security benefits will be taxable at all. If your combined income (adjusted gross income + nontaxable interest + half of your Social Security benefits) is less than $25,000 for single filers or $32,000 for joint filers, none of your benefits are taxable. Above those thresholds, up to 85% of your benefits may be subject to income tax. Since you're making year-end financial moves, this might be important to consider. Some people try to manage their other income sources to stay under these thresholds.
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Anita George
•That's really helpful information about the thresholds! My adjusted gross income will definitely put me in the taxable range for Social Security, which is why I'm trying to be precise about which payments count for 2024 vs 2025.
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Miles Hammonds
DONT FORGET that your medicare premium is probably being deducted from your SS payment!! The 1099 will show the GROSS amount before medicare deduction, not what you actually received in your bank. This trips up a lot of people!!!!
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Abigail Spencer
•That's a really important point! The SSA-1099 reports the full benefit amount before any deductions, which can include Medicare premiums, tax withholding, or other deductions. Always use the gross amount from the 1099 for tax purposes, not just what was deposited in your bank account.
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Ruby Blake
I went through this same exact situation when I first started getting my retirement benefits! Everyone else is right - the January payment counts for 2025 taxes, even though it's your December benefit. One thing that drove me CRAZY trying to reach the SSA about a similar tax question last year - I kept calling and calling but couldn't get through. After two weeks of trying, I found this service called Claimyr (claimyr.com) that got me connected to a real SSA agent in under 10 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU. Saved me so much frustration! Also, the SSA-1099 usually arrives late January in my experience, sometimes early February if there are delays.
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Micah Franklin
•Is Claimyr legit? I've been trying to reach SSA for 3 days about my disability application
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Ruby Blake
•Yes, it's legitimate. It basically navigates the phone system for you and holds your place in line. When they reach an agent, they connect you. Saved me hours of frustration when I needed to sort out my Medicare enrollment issue.
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Ella Harper
If you're worried about the tax implications, you might want to consider having federal taxes withheld from your Social Security benefits. You can file Form W-4V with the Social Security Administration and choose to have 7%, 10%, 12%, or 22% withheld. This can help prevent any surprises at tax time, especially in your first year receiving benefits when it's easy to miscalculate. I opted for withholding when I started receiving my benefits three years ago, and it's made my tax situation much simpler.
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Anita George
•That's a great suggestion! I didn't realize I could have taxes withheld at different percentage levels. I might look into that for 2025 to make things easier going forward. For this year, I'll just need to set aside enough to cover what I'll owe.
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Micah Franklin
im confused… so does that mean we get 13 payments in the first year? My husband says we'll get 12 months worth no matter what but now im not sure
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Isla Fischer
•No, you always get 12 payments per year. It's just that payment dates can shift the actual receipt into different calendar years. For example, if you started benefits in January, you'd receive your first payment in February (for January), and your December payment would arrive in January of the following year. So in the first calendar year, you'd physically receive 11 payments (Feb-Dec), and in the next calendar year, you'd receive 12 payments (the delayed December payment plus the next 11 months). This only affects tax reporting timing, not the total number of payments you receive.
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Logan Chiang
my brother told me social security income isn't taxable at all lol. he's been doing it wrong for years i guess
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Abigail Spencer
•Your brother is unfortunately mistaken. Social Security benefits can definitely be taxable depending on your total income. Up to 85% of benefits may be subject to federal income tax if your combined income exceeds certain thresholds. Many retirees are surprised by this! It's always best to consult the official IRS guidelines or a tax professional rather than rely on word-of-mouth advice.
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Anita George
Thanks everyone for the helpful responses! To summarize what I've learned: 1. Only the payments I physically receive in 2024 count for 2024 taxes 2. The December payment that arrives in January 2025 will count for 2025 taxes 3. I should wait for my SSA-1099 form in late January/early February for the official numbers 4. The 1099 will show the gross amount before any Medicare deductions 5. I might want to consider tax withholding from my SS payments going forward This helps tremendously with my year-end planning!
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