What are the tax implications of survivor benefits?

What are the tax implications of survivor benefits?

Survivor benefits can be taxable depending on the type of benefit and your overall income. Social Security survivor benefits are generally not taxable unless your income exceeds certain thresholds.

What thresholds should I be aware of?

For 2023, if your combined income is between $25,000 and $34,000 for single filers, you may pay taxes on up to 50% of your benefits. Above $34,000, up to 85% may be taxable.

Are there any deductions I can claim?

Yes, you may be able to claim deductions for medical expenses, mortgage interest, and other eligible expenses that can lower your taxable income.

How do I report these benefits on my tax return?

You report survivor benefits on your tax return using Form 1040. You'll receive a Form SSA-1099 that shows the total benefits received, which you'll need for accurate reporting.