Thank you for using justanswer. If you are filing single, with only yourself as a dependent, you may earn up to $12000, the amount of your standard deduction for single ($5350) +your personal exemption for being over the age of 65. ($6650)
If you are married filing a joint return with your spouse, you may earn up to $23,500, the amount of your standard deduction for married filing jointly, ($10,700) + your & your spouse's personal exemption for both of you being over the age of 65. ($12,800)
Please note: These figures do not include other variables, such as any pension income you may have, social security, etc. If you have earnings PLUS other income (pension, interest, dividends, etc) that exceeds the above mentioned figures, then you may have a tax liability. I have included the link with the 2007 instrustions for the Federal 1040.
You might also incur a tax liability if you have self employment income >$400.
I hope this helps.
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Instructions 1040 in Adobe PDF Format