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CGCPA
CGCPA, CPA
Category: Social Security
Satisfied Customers: 3820
Experience:  My experience over the years has involved Social Security,
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I am on social sercurity and i collect a small pension. My

Customer Question

Hi sir, i am on social sercurity and i collect a small pension. My house was just paid off. Do i still have to file a tax form if that is the only item i have to report?
Submitted: 1 year ago.
Category: Social Security
Expert:  CGCPA replied 1 year ago.

The filing of a tax return is based on your income and not on deductions like mortgage interest. However, if you do not have any interest income, dividend income, rent or business income, or anything along those lines, you will not need to file a return. If you have any of those you may need to file if the total of those items and 1/2 your Social Security exceeds $25,000 ($32,000 if married filing a joint return). Please look at last year's tax returns and see if that is the case. If so we can revisit this to see if a return is needed.

Expert:  CGCPA replied 1 year ago.

Your pension should also be included in the calculation.

Customer: replied 1 year ago.
are you telling me that if i recieve 1550.00 for social security and 287.00 a month for pension i don't need to file taxes on my house even though I have to pay them each you of 394.00?
Expert:  CGCPA replied 1 year ago.

Property taxes are not to be confused with income taxes. The payment of property taxes (real estate taxes, school taxes are other names used for these) has nothing to do with the requirement to file an income tax return. That requirement is based solely on income and taxes you pay ARE NOT income.

Based solely on the information you have provided, you have no requirement to file an income tax return. However, there can be other reasons which can make the filing of an income tax return a desirable choice. For example, if you have tax withheld from you pension and/or SS benefit payments you need to file a return to get a refund of those taxes. If you live in an area where the is a refundable school tax credit (like NYC) you cannot receive a refund unless you file a return. BUT JUST BECAUSE YOU PAY PROPERTY TAXES ON YOUR HOME DOES NOT OBLIGATE YOU TO FILE INCOME TAX RETURNS.