For tax year 2021, you can stop filing income taxes at age 65 if:
- You are 65+, unmarried, and making less than $14,250.
- You are 65+, married, filing jointly, and making less than $26,450.
- You are a qualifying widow, earning less than $26,450.
The IRS will want you to file a tax return whenever your income rises above the total of the standard deduction for your specific filing status, in addition to one exemption amount. These filing rules do still apply to seniors currently living on their Social Security. However, if Social Security happens to be your sole income source, then you do not need to file a tax return.
When Do Seniors Need To File Taxes?
You need to file a tax return if you are 65+ years old, unmarried, and your gross income was $14,250 or higher for the tax year 2021. However, if you live on your Social Security benefits, you do not need to include this in your gross income, according to Turbo Tax. If this is your one and only source of income, your gross income will come out to zero, meaning you do not have to file a federal income tax return. if you earn additional income that is not exempt from being taxed, though, then you must figure out if the yearly total exceeds $14,250.
For previous tax years, these amounts are based on the year’s standard deduction, in addition to the exemption amount for your age and filing status. When you and your spouse are 65+, married, and filing jointly, you must file a return if your combined gross income surpasses $27,800. If your spouse is under the age of 65, then the threshold amount falls to $26,450. Keep in mind these specific income thresholds applied in the 2018 tax year, and typically increase each year.
When To Include Social Security In Your Gross Income
There are a few circumstances that exist when a senior must include Social Security benefits in their gross income. For instance, if you are married, filing an individual tax return, and live with your spouse during the year, 85% of your benefits are deemed gross income. This scenario may call for filing a tax return.
An allotment of your Social Security benefits are included in your gross income, regardless of your status, in any year the total of half your Social Security, including tax-exempt interest, exceeds $25,000 or $32,000, as long as you are married and filing jointly.
What Age Do You Stop Paying Taxes On Social Security?
You may stop paying taxes on Social Security at age 65 as long as your income is not substantial. Turbo Tax provides all the specifics in this article.
Tax Credits For Seniors
There are a few ways to lower the amount you’ll pay on your taxable income. Tax credits are available for individuals ages 65+, earning their own income from alternative sources than Social Security that is not high. Bear in mind the tax credit only comes in handy when you owe the IRS.
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