In our continuing effort to put our customers in control of their financial future, Social Security provides various online tools and resources that save time and effort. This webpage provides information to tax preparers about various Social Security online services including the my Social Security account that you can share with your clients to help streamline tax preparation.
Income Taxes and Social Security Benefits
Some people have to pay federal income taxes on their Social Security benefits. This usually happens if your clients have other substantial income in addition to their benefits. Substantial income includes: wages, earnings from self-employment, interest, dividends, and other taxable income that must be reported on their tax return.
No one pays federal income tax on more than 85 percent of their Social Security benefits based on Internal Revenue Service (IRS) rules. For more information about when federal income tax may apply to Social Security benefits, visit our benefits planner page on Income Taxes And Your Social Security Benefits.
Get Replacement Social Security Tax Forms Online with Ease
If your clients need a replacement form SSA-1099 or SSA-1042S for any of the past six years in which they received benefits, we have a way for them to get an instant replacement form quickly and easily. Encourage your clients who need replacement tax forms to get an instant replacement form with an online my Social Security account. If they don’t have a personal my Social Security account, creating a secure account is very easy to do and usually takes less than 15 minutes. In their account, they can select the “Replace Your Tax Form SSA-1099/SSA-1042S” link. Then they will select the year under “Choose a year” dropdown menu and select the “Download” link.
Replacement tax forms for the previous tax year are generally available beginning February 1 of each year.
If your clients are noncitizens who live outside of the United States and they received or repaid Social Security benefits last year, we will send them form SSA-1042S instead. The forms SSA-1099 and SSA-1042S are not generated for people who receive Supplemental Security Income (SSI). Your clients can go to www.ssa.gov/foreign and learn how they can access our online services.
Your Clients Can Get Their Social Security Statement Online
Your clients can get their personal Social Security Statement online by using their personal my Social Security account. The online Statement gives your clients secure and convenient access to their recent earnings history. It also shows estimates for retirement, disability, and survivors benefits.
You can share this Social Security Matters blog post about the Social Security Statement as well.
Your Clients Can Get a W-4V Online
If you are working with a client who receives Social Security benefits, remember that they have the option of having federal income tax withheld from their benefits at the rate of 7, 10, 12, or 22 percent.
To start, change, or stop federal income tax withholding from their Social Security benefits, your clients can sign and submit IRS form W-4V directly to their local Social Security office. Taxes will be paid directly to the IRS and will be shown on their form SSA-1099 the following tax season.
Save Time — Business Owners Can Report Wages Online
Do you manage payroll responsibilities for some of your clients? Use our Business Services Online (BSO) to report employee wages and verify names and Social Security numbers for W-2s.
BSO is a suite of services that allows organizations, businesses, employers, and third parties to exchange information with Social Security securely over the internet.
BSO allows you to send W-2s and W-2cs to Social Security either by uploading a specifically formatted electronic file or by directly keying W-2s and W-2cs into an online form. This allows you to view the processing status, errors, and error notices for wage files and/or wage reports submitted by or for your company.
Additional levels of security are now required to access BSO employer services. Effective March 25, 2023, current and new BSO users will use SSA’s Public Credentialing and Authentication Process to access employer services. If you have a Social Security online account, Login.gov, or ID.me credential, please visit our Social Security sign in page.
If you do not have a Social Security online account, or a Login.gov or ID.me credential, you will need to create one from our Employer page. Scroll down and select “Create Account” in the “Employers” box.
One of our priorities is getting our customers secure access to the information they need when, where, and how they need it. Our online services have never been better or easier to use. Social Security is here to help you and your clients secure today and tomorrow.
FAQs
Individuals looking to work as tax professionals can either become a CPA or an enrolled agent. EAs only need to pass the SEE, while CPAs need to pass the Uniform CPA Examination and complete educational and professional requirements set by their state.
Does the IRS investigate tax preparers? ›
Most paid tax return preparers are professional, honest, and trustworthy. The IRS is committed to investigating those who act improperly. Complaints can be submitted through our online process, faxed, or mailed. You can upload or include attachments with your complaint.
What is the responsibility of a tax preparer? ›
Prepare or assist in preparing simple to complex tax returns for individuals or small businesses. Compute taxes owed or overpaid, using adding machines or personal computers, and complete entries on forms, following tax form instructions and tax tables.
What age do you stop paying taxes on Social Security? ›
The answer is almost always "never" as long as you're employed but there are exceptions. Consider consulting with a tax professional if you think any of these situations or exceptions might apply to you. Social Security Administration.
What does the IRS require to be a tax preparer? ›
To become a CTEC registered tax preparer, you must: Take a 60-hour qualifying education course from a CTEC approved provider within the past 18 months. Purchase a $5,000 tax preparer bond from an insurance/surety agent. Get a Preparer Tax Identification Number (PTIN) from the IRS.
What does EA mean for a tax preparer? ›
An enrolled agent is a tax practitioner who is licensed at the federal level by the Internal Revenue Service. In fact, enrolled agent status is the highest credential awarded by the IRS. On the other hand, certified public accountants are licensed by their applicable state boards of accountancy.
Can I get in trouble if my tax preparer made a mistake? ›
The agency will still bill you, including for any associated interest and fees, but as long as you aren't committing deliberate fraud they're unlikely to impose serious fines and you won't be arrested. The IRS will even typically work with you on a structured payment plan if you can't pay everything all at once.
Can a tax preparer get audited? ›
Depending on the allegations involved, an IRS audit or investigation targeting a tax preparer can lead to civil or criminal penalties. In addition to fines, tax preparers can also face loss of their IRS registration and the possibility of federal imprisonment.
What happens if a tax preparer lies on taxes? ›
However, when the IRS detects the false return, the taxpayer — not the return preparer — must pay the additional taxes and interest and may be subject to penalties.
What are the disadvantages of a tax preparer? ›
The Disadvantages of Professional Tax Preparation
While professional tax preparation can offer convenience and expertise, it can also come with potential drawbacks such as high fees and the possibility of errors or omissions made by the tax preparer.
A paid tax return preparer is primarily responsible for the overall substantive accuracy of your return and by law, is required to sign the return and include their preparer tax identification number (PTIN) on it.
What is the difference between a tax accountant and a tax preparer? ›
What's the difference between a CPA and a tax preparer? Well, both can prepare taxes, but the latter specializes in tax preparation. On the other hand, CPAs may provide tax preparation services, but they may also offer different professional expertise. And many CPAs don't perform tax preparation at all.
How do I get the $16728 Social Security bonus? ›
Have you heard about the Social Security $16,728 yearly bonus? There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.
Do I have to pay taxes after 70 years old? ›
Taxes aren't determined by age, so you will never age out of paying taxes. Basically, if you're 65 or older, you have to file a tax return in 2022 if your gross income is $14,700 or higher.
How much money can seniors make and not file taxes? ›
If you are at least 65, unmarried, and receive $15,700 or more in nonexempt income in addition to your Social Security benefits, you typically need to file a federal income tax return (tax year 2023).
Is EA or CPA better? ›
EAs are best for help with IRS issues and tax preparation and planning advice for an individual or business. CPAs are best for broader accounting needs and identifying credits and deductions to increase your tax refund or lower your tax bill.
What's the difference between a CPA and a tax preparer? ›
What's the difference between a CPA and a tax preparer? Well, both can prepare taxes, but the latter specializes in tax preparation. On the other hand, CPAs may provide tax preparation services, but they may also offer different professional expertise. And many CPAs don't perform tax preparation at all.
What is the highest tax credential? ›
Enrolled agent status is the highest credential the IRS awards. Individuals who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every three years. Enrolled agents, like attorneys and certified public accountants (CPAs), have unlimited practice rights.
What is a fancy name for a tax preparer? ›
A trained professional, such as an accountant or tax expert, who assists in preparing tax documents. preparer. accountant. tax adviser. tax advisor.
