I will be receiving social security as a surviving spouse. How is this income classified? Is it earned or deferred income?
Hello, the rules governing social security are complex and it is best to consult with your tax planner/CPA as to your individual situation. In general, Social Security benefits such as monthly retirement, disability and survivor may all be taxed as income. However, supplemental security income (SSI) isn’t taxable. Any taxable amount depends on your total income and benefits for the year. You must compare one-half of your benefits, plus all of your other income, to the base amount for your filing status to determine whether your benefits are taxable. Below please find useful information:
What You Need To Know When You Get Retirement Or Survivors Benefits - can be found at http://www.ssa.gov/pubs/EN-05-10077.pdf or visit the SSA website section for Survivors at http://www.ssa.gov/planners/survivors/survivorchartred.html#&sb=-1
Please consult an accountant or other tax professional for more information. You can contact the Internal Revenue Service at (800) 829-1040 or www.irs.gov. Publication 554, Tax Guide for Seniors, and Publication 915, Social Security and Equivalent Railroad Retirement Benefits may be useful. | 10.08.15 @ 17:35