What Age Can You Stop Filing Income Taxes?
Updated For Tax Year 2021
You can stop filing income taxes at age 65 if:
- You are a senior that is not married and make less than $14,250
- You are a senior that is married, and you are going to file jointly and make less than $26,450
- You are a qualifying widow, and earned less than $26,450
The IRS will want you to file a tax return when your gross income surpasses the total of the standard deduction for your filing status, in addition to one exemption amount. These filing rules will still apply to senior citizens who are living on their Social Security. However, if you are a senior, you don’t consider your Social Security income as gross income. If Social Security is your only source of income, then you won’t need to file a tax return.
When Seniors Must File Taxes
For the tax year 2021, you will need to file a tax return if you are not married, at least 65 years of age, and your gross income was $14,250 or higher. But, if you live on your Social Security benefits, you don’t include this in your gross income according to TurboTax. If this is solely the income you receive, then your gross income comes out to zero, and you won’t have to file a federal income tax return. But if you do earn additional income that is not exempt from being taxed, then each year you must figure out whether the 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 filing status and age. For tax years after 2018, only the standard deduction is used because exemptions are no longer used in calculating your taxable income under the new tax law passed in the latter part 2017.
When you and your spouse are 65 years of age or older and married and are going to file a joint return, you have to file a return if your joined gross income exceeds $27,800 or more. When your spouse is under 65 years old, the threshold amount diminishes to $26,450. Bear in mind that these income thresholds only apply to the 2018 tax year, and usually increase somewhat each year after.
When To Include Social Security In Your Gross Income
There are certain circ*mstances when seniors must add their Social Security benefits in their gross income. If you are married and file an individual tax return and reside with your spouse during the year, 85% of your Social Security benefits are deemed gross income which may warrant you to file a tax return. Additionally, an allotment of your Social Security benefits are included in gross income, no matter your status, in any year the total of half your Social Security including all other income, tax-exempt interest, exceeding $25,000 or $32,000 if you are married and filing jointly.
Tax Credits For Seniors
Even if you have to file a tax return, there are ways you can decrease the amount of tax you will pay on your taxable income. So long as you are a minimum of 65 years old and your income from sources other than your Social Security is not high, then a tax credit for seniors, the elderly or disabled, can lessen your tax bill on a dollar-for-dollar arrangement. Nevertheless, this tax credit is only useful when you truly owe tax to the IRS.
What Age Do You Stop Paying Taxes on Social Security?
You can stop paying taxes on Social Security at 65 years old as long as your income is not high. According to TurboTax, “As long as you are at least 65 years old and your income from sources other than Social Security is not high, then the tax credit for the elderly or disabled can reduce your tax bill on a dollar-for-dollar basis. However, this tax credit is only useful when you actually owe tax to the IRS.”
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FAQs
At What Age Can You Stop Filing Taxes? Taxes aren't determined by age, so you will never age out of paying taxes. Basically, if you're 65 or older, you have to file a return for tax year 2023 (which is due in 2024) if your gross income is $15,700 or higher.
Do seniors over 70 need to do federal tax returns every year? ›
If Social Security is your sole source of income, then you don't need to file a tax return. However, if you have other income, you may be required to file a tax return depending on the amount of other income. Here are the guidelines.
When can you stop filing income tax returns? ›
That said, there is one situation in which you can kiss taxes goodbye. If your only income is Social Security payments, you won't owe taxes and you probably won't need to file a tax return. If you're 65 or older, you might also be retired or partially retired and taking distributions from your retirement savings.
How much can seniors make and not file taxes? ›
If you are at least 65, unmarried, and receive $15,700 or more in nonexempt income in addition to your Social Security benefits, you typically need to file a federal income tax return (tax year 2023).
Does a 70 year old have to pay taxes on Social Security? ›
Though there are some rumors on the internet that the government stops taxing Social Security payments once you reach a certain age, such as 70, this is simply not true. Social Security payments are taxable from the moment you start receiving them until you die.
At what age are tax returns no longer required? ›
At What Age Can You Stop Filing Taxes? Taxes aren't determined by age, so you will never age out of paying taxes. Basically, if you're 65 or older, you have to file a return for tax year 2023 (which is due in 2024) if your gross income is $15,700 or higher.
Do I need to file taxes if my only income is Social Security? ›
Generally, if Social Security benefits were your only income, your benefits are not taxable and you probably do not need to file a federal income tax return.
Does Social Security count as income? ›
You report the taxable portion of your social security benefits on line 6b of Form 1040 or Form 1040-SR. Your benefits may be taxable if the total of (1) one-half of your benefits, plus (2) all of your other income, including tax-exempt interest, is greater than the base amount for your filing status.
Do seniors still get an extra tax deduction? ›
IRS extra standard deduction for older adults
For 2024, the additional standard deduction is $1,950 if you are single or file as head of household. If you're married, filing, jointly or separately, the extra standard deduction amount is $1,550 per qualifying individual.
What is the oldest tax return I can file? ›
If you are due a refund for withholding or estimated taxes, you must file your return to claim it within 3 years of the return due date. The same rule applies to a right to claim tax credits such as the Earned Income Credit.
Have you heard about the Social Security $16,728 yearly bonus? There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.
Is there a federal tax credit for being over 65? ›
Elderly or Disabled Tax Credit
This credit can also get you a tax refund if the deducted amount exceeds the amount you owe the IRS. To be eligible for this credit, you must be over the age of 65 or permanently disabled. Your income must not exceed certain levels, and those levels change from year to year.
What is the new standard deduction for seniors over 65? ›
How much is the additional standard deduction? For tax year 2023, the additional standard deduction amounts for taxpayers who are 65 and older or blind are: $1,850 for single or head of household.
At what age is Social Security no longer taxed IRS? ›
Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.
When a husband dies, does his wife get his Social Security? ›
Social Security survivors benefits are paid to widows, widowers, and dependents of eligible workers. This benefit is particularly important for young families with children.
What is the Social Security 5 year rule? ›
• If you become disabled before your full retirement age, you might qualify for Social Security disability benefits. You must have worked and paid Social Security taxes in five of the last 10 years.
Why is there a separate 1040 for seniors? ›
The main advantage of using Form 1040-SR is that it has larger type, which can make it easier to read if you're doing your taxes by hand. It also emphasizes some specific tax benefits for those over age 65, although these benefits are also included in Form 1040.
Does the IRS do taxes for seniors? ›
In-person IRS help for seniors and low-income taxpayers
Eligible taxpayers can have their taxes prepared in person for free with these two programs: Tax Counseling for the Elderly – The TCE program prioritizes taxpayers aged 60 and older.
Does Social Security count as income for taxes? ›
You report the taxable portion of your social security benefits on line 6b of Form 1040 or Form 1040-SR. Your benefits may be taxable if the total of (1) one-half of your benefits, plus (2) all of your other income, including tax-exempt interest, is greater than the base amount for your filing status.
