Who must file Form SSA-1099?


Quick Answer

Form SSA-1099 must be filed by individuals whose total taxable income added to 50 percent of their Social Security benefits exceed the base amount for that person's filing status, as the IRS describes. At the beginning of each year, the Social Security Administration mails out an SSA-1099 to all people who receive Social Security benefits.

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Full Answer

People with a higher income are subject to a higher percentage of their benefits being taxable, notes the IRS. Most people find that 50 percent of their benefits are taxable, but it can be as high as 85 percent for people with high incomes. Married people who are filing separately are also subject to a higher taxable amount.

It is not necessary to physically send the SSA-1099 to the IRS, says Tom Streissguth of The Nest. The IRS keeps this information in its system and compares it with the information reported on tax returns. If the amounts don't match, the IRS sends out letters with the appropriate corrections.

For nonresident aliens, people who are not United States citizens or residents, the equivalent form is the Form SSA-1042S or RRB-1042S, as explained by the IRS. Nonresident aliens have 85 percent of their benefits taxed at a rate of 30 percent. Countries such as Canada and the United Kingdom have tax treaties with the United States, and their residents are exempt from U.S. taxation of their benefits.

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