Ask Larry

Does Failing To File Taxes Affect My SS Benefit Amount?

Does not filing taxes for years affect my SS monthly amount?

Hi. Failing to file tax returns wouldn't affect your Social Security benefit rate as long as you still paid Social Security taxes on your earnings. Employers withhold and pay Social Security taxes for covered wage earners, so workers get credit for those earnings even if they don't pay income taxes.

However, self employed people pay their Social Security taxes in the form of self-employment taxes, which are reported and paid when they file their tax returns. So, failing to file tax returns could adversely affect a person's Social Security retirement or disability benefit rate.

Furthermore, if and when a person claims Social Security benefits the IRS can place a levy on the person's benefits in order to collect delinquent taxes.

Best, Jerry

Category: 
Posted: 
Sep 5 2021 - 7:34pm
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