This depends on the state that they are residents of. Look at laws governing income for their state or contact a lawyer/CPA near them to get your best answer.
My parents only have social security. They filed federal and state taxes so that there was a paper trail but it wasn’t necessary to do because their income is so low.
The reasons to do it is if you want to apply for Medicaid or want to be eligible for some medical benefit. . My father had AMD and needed shots to keep it from progressing. They were $5k each time but he was eligible to receive them for free through Good Days. He had to supply a tax return.
its a good idea to file a return even if you don’t have to.
enricor: This is a question for a certified public accountant, who will know the dollar amount cap that enable a person to NOT have to file federal and state income tax returns. Social security IS taxable income, but the CPA will be able to advise you of the dollar amount that the IRS allows to not file.
Who must file anyone that has an income of $28,700 for married filing jointly over the age of 65. This does not include social security so if they only have social security they do not need to file.
Do they have any pensions or interest on bank accounts that meet the $28,700 if they do then YES they have to file if NO then the don't have to file.
With my software I use for tax returns we can't file if they only have social security, we usually ask if they have interest on bank accounts then we can file a tax return. Even $1 for interest we can file a tax return.
When they do file a tax return it lets the IRS know that they are still alive and keeps identity theft down.
My Mom and MIL, widows, got a letter from IRS saying they no longer had to file because SS was their main income. Interest they received did not take them over the cap. My Mom still received all her discounts thru the State for homestead rebate and Senior tax discount. No one ever asked for a copy of her taxes. She just filled out a form with her SS, pension, and interest. Took that info to the tax office to have them put her property tax info in and confirm taxes were paid. I was told by my tax preparer that if Mom filed, she would only get a small amt for her dependent deduction. That would be used to pay for her taxes to be done.
I'm an AARP tax aide volunteer, and our training suggests that filing Federal and state taxes is important even if the only income is social security.
First, there is an increase in identity theft and filing is one way to make sure no one has stolen your identity and is filing under your social security number. We actually had that happen some years back. When we went to electronically file our joint return, it said someone with my ss number had already filed. It took lot of effort to straighten out, but the IRS was very helpful. We actually owed money that year so I couldn't figure out why someone would file with my number. Apparently there is a major scam, often from overseas, where people will get enough information to file under your number and will file a totally erroneous returm with fake income, exemptions and deductions, etc. to get a big refund. I asked the IRS person how this was even possible, how would the scammers get refunds, etc. without a correct mailing address for a check or a bank account number for direct deposit. He said that the IRS does not start cross checking employer and other income records against filed returns until well after the end of tax filing season so they wouldn't catch the fakes until then. He said that that people can ask for a refund on a pre-paid VISA or other debit card, so there is not even any record of a correct address or actual bank.
A second reason to file even if income is only social security is to take advantage of state tax refund programs for lower income people. Our state has a sales tax fairness credit, a property tax fairness credit (also available on a prorated basis for renters), and recently gave out checks from a state surplus that had accrued from tax collections and Covid relief funds. The only way the state knew who to send those checks to was if they had filed federal and state income taxes. The state generously opened up tax filing season again, lasting to October last year, to allow previous non-filers to file and get their state check. The AARP volunteer tax aide program opened back up again and asked for volunters to help out with this new filing season. We handle returns for a lot of elderly folks, so it was very rewarding to see how grateful they were for the opportunity. Most of them weren't aware of other state tax credit programs for lower income people and elders, which they would be eligible for on an ongoing basis. Most of them said they would be filing in the future, and indeed we saw many of them come in for the 2023 tax season.
Yes. Always file even it the total is zero. I was told because of the paper trail. My daughter did not work for one year and owed nothing got nothing back but my tax guy said it was best to fill out a form with 0 dollars that way if questions came up then we would have a record of it.
That depends. See a CPA or tax attorney. If you have less than a certain amount (uncertain of amount yearly but the IRS web site will tell you) then you don't have to file taxes. But remember, there may be income other than SS. Were I only to use SS I would likely not have to file, but I have small pension and have also the interest on my accounts that is earned yearly. Those together mean I do have to file, and do have to pay taxes.
and state taxes so that there was a paper trail but it wasn’t necessary to do because their income is so low.
The reasons to do it is if you want to apply for Medicaid or want to be eligible for some medical benefit. . My father had AMD and needed shots to keep it from progressing. They were $5k each time but he was eligible to receive them for free through Good Days. He had to supply a tax return.
its a good idea to file a return even if you don’t have to.
Do they have any pensions or interest on bank accounts that meet the $28,700 if they do then YES they have to file if NO then the don't have to file.
With my software I use for tax returns we can't file if they only have social security, we usually ask if they have interest on bank accounts then we can file a tax return. Even $1 for interest we can file a tax return.
When they do file a tax return it lets the IRS know that they are still alive and keeps identity theft down.
I hope this helps.
First, there is an increase in identity theft and filing is one way to make sure no one has stolen your identity and is filing under your social security number. We actually had that happen some years back. When we went to electronically file our joint return, it said someone with my ss number had already filed. It took lot of effort to straighten out, but the IRS was very helpful. We actually owed money that year so I couldn't figure out why someone would file with my number. Apparently there is a major scam, often from overseas, where people will get enough information to file under your number and will file a totally erroneous returm with fake income, exemptions and deductions, etc. to get a big refund. I asked the IRS person how this was even possible, how would the scammers get refunds, etc. without a correct mailing address for a check or a bank account number for direct deposit. He said that the IRS does not start cross checking employer and other income records against filed returns until well after the end of tax filing season so they wouldn't catch the fakes until then. He said that that people can ask for a refund on a pre-paid VISA or other debit card, so there is not even any record of a correct address or actual bank.
A second reason to file even if income is only social security is to take advantage of state tax refund programs for lower income people. Our state has a sales tax fairness credit, a property tax fairness credit (also available on a prorated basis for renters), and recently gave out checks from a state surplus that had accrued from tax collections and Covid relief funds. The only way the state knew who to send those checks to was if they had filed federal and state income taxes. The state generously opened up tax filing season again, lasting to October last year, to allow previous non-filers to file and get their state check. The AARP volunteer tax aide program opened back up again and asked for volunters to help out with this new filing season. We handle returns for a lot of elderly folks, so it was very rewarding to see how grateful they were for the opportunity. Most of them weren't aware of other state tax credit programs for lower income people and elders, which they would be eligible for on an ongoing basis. Most of them said they would be filing in the future, and indeed we saw many of them come in for the 2023 tax season.
Do they have Taxed-Deferred accounts from which they are required to take Required Minimum Distributions?
Do they have any annuities or pensions?