Know what tax documents you'll need upfront Get started. Learn what education credits and deductions you qualify for and claim them on your tax return Get started. The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice.
Skip To Main Content. For tax years prior to the tax year filed in , these amounts are based on the year's standard deduction plus the exemption amount for your age and filing status. Beginning in , only your standard deduction is used since exemptions are no longer part of calculating your taxable income under the new tax law passed in late Keep in mind that these income thresholds only apply to the tax year, and generally increase slightly each year.
When to include Social Security in gross income There are certain situations when seniors must include their Social Security benefits in gross income. Tax credit for seniors Even if you must file a tax return, there are ways you can reduce the amount of tax you have to pay on your taxable income.
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This will ensure that you got the appropriate tax credit in advance. If you did not get enough, you can collect the extra when you file. As the table above indicates, individuals younger than age 65 must file if they make certain amounts. The earnings threshold amounts go up a bit for individuals 65 and up. For married couples that file separate tax returns, the earnings target is based on the age of the older spouse.
In most situations, your age for tax purposes depends on how old you were on the last day of the year. The one-day grace period allows you to use the higher income thresholds to determine whether you must file a tax return. The IRS also has different rules for dependents who earn money. Generally, a dependent must file a return and pay any taxes due. But the amounts that trigger the filing depend on the type of income — earned or unearned. Older individuals and persons of any age who are blind also must make some extra calculations to determine whether they need to file a Form This money counts toward determining whether you have to file a return, regardless of whether it was your sole source of income or an occasional side job.
If your annual gross self-employment income is at least as much as the income level for your filing status, you have to send in a Form and Schedule C or Schedule C-EZ reporting your earnings.
This benefit is available to qualified individuals even if they owe no tax, meaning they would get money back from the federal government. Many people think the credit is available only to parents. But the credit amount is greater for eligible low-wage taxpayers with children. Plus, the IRS says that most individual taxpayers are due a tax refund. You can check out the filing requirements section of IRS Publication 17 for more details.
This year, the deadline for filing your tax return is Thursday, April 15, In addition to requirements based on age, your filing status and income, along with rules regarding the Affordable Care Act and self-employment income, there are several other situations that require you to file a tax return.
You must also file if you had write-in taxes that might include taxes on group term life insurance or health savings accounts. You also have to file if you have recapture taxes on the profitable sale of an asset. A second instance in which you have to file a return is if you or your spouse if filing jointly received distributions from a health savings account, Archer MSA or Medicare Advantage MSA. Finally, if you have a tax liability and are making payments under an installment agreement, you must file a return.
How We Make Money. Written by Laurie Garrison. Written by. Because the standard deduction has nearly doubled for all taxpayers for through — and taxpayers age 65 or older continue getting an extra deduction — there's a chance even more retirees won't have to file than in the past. Correction: An earlier version incorrectly stated the extra deduction for older filers. Skip Navigation. Key Points. Retirees whose only source of income is Social Security generally will not owe any federal taxes and therefore don't need to file a return with the IRS.
Even some people with taxable sources of income end up owing nothing, due to how Social Security benefits are taxed and the higher standard deductions for those age 65 and older.
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