When Can Seniors Stop Filing Taxes? | Senior Finance Advisor

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When Can Seniors Stop Filing Taxes?

March 13, 2020

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When Can Seniors Stop Filing Taxes?

March 13, 2020

When can seniors stop filing taxes? Social Security doesn’t count as your gross income, so if you solely rely on it, do you still need to file a tax return?

Retirement and taxes

Let’s get right to it. Turbotax says:

“The IRS requires you to file a tax return when your gross income exceeds the sum of the standard deduction for your filing status plus one exemption amount. These filing rules still apply to senior citizens who are living on Social Security benefits. If you are a senior, however, you don’t count your Social Security income as gross income. If Social Security is your sole source of income, then you don’t need to file a tax return.”

If you are unmarried, 65 or older, and your gross income is $13,850 or more, you must file a tax return. What can get confusing is that Social Security is not included in your gross income. For example, if you are only collecting Social Security benefits as your sole source of income, then your gross income is considered zero; therefore, you do not need to file an income tax return.

If you are married and file a joint return with a spouse who is at least 65 years old, you must file a federal tax return if your income is $27,000 or above. These thresholds change year by year, so please keep up with the newest information come tax filing season.

Does Social Security ever count as gross income?

There are situations where collecting your Social Security benefits can be included in gross income. Those who are married and filing separately, 85% of your Social Security benefits are considered to be gross income. Because of this number, you may need to file a tax return.

Can the Senior Tax Credit help me?

The Senior Tax Credit is applicable to those who anticipate owing money to the IRS and if you meet certain qualifications. This tax credit for seniors or disabled can very much reduce your tax bill. Keep in mind that if you are expecting a return, then the Senior Tax Credit is not applicable. For more information on the Senior Tax Credit, please read here.

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When Can Seniors Stop Filing Taxes

When Can Seniors Stop Filing Taxes?

When can seniors stop filing taxes? Social Security doesn’t count as your gross income, so if you solely rely on it, do you still need to file a tax return?

When can seniors stop filing taxes? Social Security doesn’t count as your gross income, so if you solely rely on it, do you still need to file a tax return?

Retirement and taxes

Let’s get right to it. Turbotax says:

“The IRS requires you to file a tax return when your gross income exceeds the sum of the standard deduction for your filing status plus one exemption amount. These filing rules still apply to senior citizens who are living on Social Security benefits. If you are a senior, however, you don’t count your Social Security income as gross income. If Social Security is your sole source of income, then you don’t need to file a tax return.”

If you are unmarried, 65 or older, and your gross income is $13,850 or more, you must file a tax return. What can get confusing is that Social Security is not included in your gross income. For example, if you are only collecting Social Security benefits as your sole source of income, then your gross income is considered zero; therefore, you do not need to file an income tax return.

If you are married and file a joint return with a spouse who is at least 65 years old, you must file a federal tax return if your income is $27,000 or above. These thresholds change year by year, so please keep up with the newest information come tax filing season.

Does Social Security ever count as gross income?

There are situations where collecting your Social Security benefits can be included in gross income. Those who are married and filing separately, 85% of your Social Security benefits are considered to be gross income. Because of this number, you may need to file a tax return.

Can the Senior Tax Credit help me?

The Senior Tax Credit is applicable to those who anticipate owing money to the IRS and if you meet certain qualifications. This tax credit for seniors or disabled can very much reduce your tax bill. Keep in mind that if you are expecting a return, then the Senior Tax Credit is not applicable. For more information on the Senior Tax Credit, please read here.

Related Articles: