Dear Editor:
Americans should be aware of the Social Security information and requirements that affect their federal income tax returns, according to Yvonne Bryant, manager of the Social Security office in Jersey City. “Leaving out certain information or getting it wrong could delay your tax refund,” Ms. Bryant said.
She provided the following tips for taxpayers:
1. Make sure all the dependents you list have Social Security numbers.
All dependents listed on your federal tax returns will need Social Security numbers. If any of your dependents needs a Social Security number, you can get an application by contacting Social Security at 1-800-722-1213.
2. Check the Social Security numbers you use to make sure they are the correct numbers.
The Internal Revenue Service (IRS) checks all the names and Social Security numbers on your tax return against Social Security’s records. If the names and numbers do not match Social Security’s records, you will receive a letter from the IRS asking you to explain the discrepancy. You cannot receive a tax refund until the discrepancy is resolved.
3. If you are self-employed and net $400 or more a year, you must pay Social Security taxes.
You must report net earnings of $400 or more a year on schedule SE of your federal income tax return and file it with your income tax return. Even if you don’t owe any income tax, you may owe Social Security tax.
4. If you paid a household worker at least $1,300 in wages last year, you are required to report those wages and pay Social Security tax on them with your tax return.
Workers covered by this law include maids, cleaning persons, childcare providers, gardeners and others who provide household services. However, if the worker is under age 18, you do not have to report the wages unless household work is the worker’s principal occupation. Under this rule, for example, most teenagers who baby-sit or cut your grass are excluded.
5. If you already receive Social Security benefits, you may have to pay income taxes on part of your benefits.
You may owe taxes on some of your Social Security benefits. Contact the IRS to see if you do.
For more information about Social Security, visit our website at www.ssa.gov or call Social Security’s toll-free number, 1-800-772-1213. If you have tax questions, call the Internal Revenue Service at 1-800-829-1040.
Social Security Administration