The IRS typically requires you to file a tax return when your gross income exceeds the standard deduction for your filing status. These filing rules still apply to senior citizens who are living on Social Security benefits. However, if Social Security is your sole source of income, then you don't need to file a tax return.
• If the only income you receive is your Social Security benefits, then you typically don't have to file a federal income tax return.
• If you are at least 65, unmarried, and receive $14,700 or more in non-exempt income in addition to your Social Security benefits, you typically must file a federal income tax return (tax year 2022).
• If you are 65, married, and file a joint return with a spouse who is also 65 or older, you typically must file a return if your non-exempt income is $28,700 or more (or $27,300 if your spouse is under 65 years old).
• If the sum of half your Social Security plus your adjusted gross income plus your tax-exempt interest and dividends exceeds $25,000 for single filers (or $32,000 if you are married filing jointly), then a portion of your Social Security benefits are included in gross income and you might need to file a tax return.
When seniors must file
For tax year 2022, unmarried seniors will typically need to file a return if:
- you are at least 65 years of age, and
- your gross income is $14,700 or more
However, if your only income is from Social Security benefits, you don't typically include these benefits in your gross income. If this is the only income you receive, then your gross income for taxes equals zero, and you typically don't have to file a federal income tax return.
But if you do earn other income including certain tax-exempt income, then each year you must determine whether the total exceeds the filing threshold.
- For tax years prior to the 2018 tax year (filed in or before 2019), these amounts are based on the year's standard deduction plus the exemption amount for your age and filing status.
- Beginning in 2018, 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 2017.
For the 2022 tax year,
- If you are married and file a joint return with a spouse who is also 65 or older, you must file a return if your combined gross income is $28,700 or more.
- If your spouse is under 65 years old, then the threshold amount decreases to $27,300.
- Keep in mind that these income thresholds only apply to the 2022 tax year, and generally increase slightly each year.
TurboTax Tip: 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.
When to include Social Security in gross income
There are certain situations when seniors must include some of their Social Security benefits in gross income. If you are married but file a separate tax return and live with your spouse at any time during the year, then 85% your Social Security benefits are considered gross income which may require you to file a tax return.
In addition, a portion of your Social Security benefits are included in gross income, regardless of your filing status, in any year the sum of half your Social Security benefit plus all of your adjusted gross income, plus all of your tax-exempt interest and dividends, exceeds $25,000, or $32,000 if you are married filing jointly.
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. 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.
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