When does a senior citizen receiving Social Security benefits stop filing taxes?
When does a senior citizen receiving Social Security benefits stop filing taxes? The IRS (Internal Revenue Service) requires you to file a tax return when your gross income exceeds the amount of the standard deduction corresponding to your filing status plus an amount corresponding to the exemption. These filing rules still apply to senior citizens receiving Social Security benefits. However, if you’re older, your Social Security income doesn’t count as part of your gross income unless you have other sources of income above a specified amount. If your only source of income is from Social Security, you don’t need to file any taxes.
When should older people file declarations?
For the tax year 2021, you will need to file a return if:
- you are at least 65 years old, and
- your gross income is $14,250 or more.
However, if you live solely on your Social Security benefits, they are not included in your gross income. If it is the only income you receive, your gross income is zero and you do not have to file a federal income tax return.
But if you have other non-tax-exempt income, each year you must determine if the total exceeds the income limit to have to file.
- For tax years prior to 2018 (filed in 2019), these amounts are based on the standard deduction for your age and filing status plus the applicable exemption(s).
- Starting in 2018, only your standard deduction is used because, under the new tax law that was enacted in late 2017, exemptions are no longer part of the calculation of taxable income.
For the tax year 2021,
- If you are married and filing jointly with a spouse who is also age 65 or older, you must file a return if your combined gross income is $27,800 or more.
- If your spouse is under 65, the limit drops to $26,450.
- Keep in mind that these income limits only apply to tax the year 2021 and typically increase a little each year.
When is Social Security included in gross income?
There are certain situations in which seniors must include Social Security benefits in their gross income. If you are married but file a separate tax return and lived with your spouse at any time during the year, 85% of your Social Security benefits are considered taxable, which may require you to file a tax return.