If I Forgot To File My Taxes Will That Affect My Social Security?
If you collect Social Security Benefits there is a possibility that you may have to file federal taxes on those benefits and according to the Social Security Administration roughly one-third of their current beneficiaries pay taxes on their Social Security Benefits. Only recipients who have a sizable income in conjunction with their benefits will be affected.
Who is Affected
For example if you are an “individual” federal tax return filer and your combined income is more than $25,000, you may have to pay taxes on up to fifty (50) percent of your benefits. If you file jointly there is a possibility you will have to pay taxes if both you and your spouse have an amassed income that is in excess of $32,000. In order to be certain of the category you fall under, it would be in your best interest to contact the Internal Revenue Service.
Consequences of Not Filing
However, if you are fully aware of your tax obligation and neglect paying your taxes there is a possibility that the your Social Security benefits can be taken away since the Social Security is funded by federal FICA taxes. However, you may be able to circumvent that outcome if you go ahead and file your back taxes. IRS agents perform routine audits in order to ensure that Social Security beneficiaries are in fact filing their taxes and if they discover someone has not been filing it could have an adverse impact on future payments. So, simply file even if it is late in order to avoid possibly having your benefits taken away.
Lastly, it is important to note that if you have several tax liens against you, your benefits may also be a revocation of benefits. So in order to maintain your benefits, pay your federal taxes or if you are having trouble, contact the IRS so that they can schedule some sort of payment plan to avoid an interruption of your benefits.