Tag: Tax return (United States)

4 Tax Filing Tips For People 65 And Older
Social Security Disability

4 Tax Filing Tips For People 65 And Older

4 Tax Filing Tips For People 65 And Older.
By Alissa Sauer, Next Avenue Contributor Tax filing time is quickly approaching (April 18, this year), so it’s a good time to offer a reminder about tax filing rules, tax deductions and tax credits specifically for people 65 and older.
1. Who Needs to File Every unmarried person over 65 who had a gross income of at least $11,900 in 2016 is required to file an income tax return.
Social Security benefits are not included in that gross income figure unless: you were either married filing separately and lived with your spouse at any time during 2016 or half of your net Social Security benefits plus other gross income and any tax-exempt interest exceeded $25,000 ($32,000 if you were married and filing jointly).
If you met either of those two exceptions, the taxable portion of your Social Security benefits is included in your gross income for determining whether you need to file a return.
If you lived only on Social Security in 2016, you won’t need to file a federal income tax return.
The Elderly or Disabled Tax Credit Some taxpayers over age 65 qualify for the Tax Credit for the Elderly or Disabled, which ranges between $3,750 and $7,500.
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If you were married and only one of you was 65 or older in 2016, you can still use the 7.5% rule.
Required Minimum Distributions from IRAs If you are 70 ½ or older and have a traditional IRA, you must take Required Minimum Distributions (RMD) and report them on your tax return.