For the tax year 2021, you may stop filing taxes at age 65 if:
- You are at least 65 years old, unmarried and making less than $14,250.
- You are at least 65 years old, married, filing jointly and making less than $26,450.
- You are a qualified widow, earning less than $26,450.
The IRS will want individuals to file a tax return whenever your gross income surpasses the total of the standard deduction for your specific filing status, in addition to one exemption amount. The filing rules still apply to seniors who are living off their social security. If you are a senior citizen, though, you don’t consider your social security as your gross income. You will not need to file a tax return if social security is your only source of income.
When Do Seniors Have To File Taxes?
For the current tax year, you must file a tax return if you are 65-plus, unmarried and your gross income is at least $14,250. However, if you live on your social security benefits, you will not need to include this in your gross income, according to TurboTax. You do not need to file if this is your sole source of income, meaning your gross income comes out to zero dollars. If you do earn additional income, that is not tax exempt, then you must figure out whether the total exceeds $14,250.
Whenever you and your spouse are at least 65 years old, married and filing jointly, you have to file a return if your combined income is $27,800 or more. If your spouse is below the age of 65, then the threshold amount decreases to $26,450. These figures were implemented during the 2018 tax year, so make sure to check if the amounts have increased.
When To Include Social Security In Gross Income
Certain situations will call for seniors to add social security benefits in their gross income. If you are married, filing an individual tax return and residing with your spouse, 85% of your social security benefits will be deemed gross income. In this case, you may need to file a tax return. An allotment of social security benefits will be included in your gross income, regardless of status, in any year the total of half your social security, including all other income, tax-exempt interest, exceeding $25,000 or $32,000 as long as you are married and filing jointly.
When Do You Stop Paying Taxes On Social Security?
You are allowed to stop paying taxes on social security at 65 as long as your total income is not a high figure. You can read all about taxes and social security rules right here courtesy of Turbo Tax.
Tax Credits For Seniors
Even if you must file a tax return, there are a few ways to decrease the amount you’ll pay on your taxable income. As long as you are 65-plus years old and your income from alternative sources than social security are not high, then tax credits for seniors can lessen your tax bill. This tax credit is only useful when you owe the IRS.
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