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RD
RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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I AM 90 YEARS OLD AND MY INCOME IS 27,000 DO I STILL HAVE ...

Resolved Question:

I AM 90 YEARS OLD AND MY INCOME IS 27,000 DO I STILL HAVE TO FILE INCOME TAX FOR THE YEAR OF 2007
Submitted: 8 years ago.
Category: Tax
Expert:  RD replied 8 years ago.

Is this income from social security benefits? If yes, than you do not have to file an income tax return.

If this is not the case, than you may have to file a tax return. If you detail the type of income you earned, I can provide a more detailed reply.

Regarding

Social Security Benefits: taxability

Generally, if Social Security is your only income, your benefits are not taxable, and you probably do not need to file a federal income tax return.

From the Internal Revenue Service's standpoint, Social Security benefits include monthly survivor and disability benefits, but not supplemental security income payments, which are not taxable.

But if you collect other income in addition to Social Security, you could owe taxes on at least a portion of your government benefits.

For a quick computation of your potential tax liability, add one-half of your Social Security benefits to all your other income.

In this calculation, you also must take into account any tax-exempt interest you earned, as well as exclusions from income such as savings bond interest, work-provided adoption benefits or foreign-earned income.

If this amount is greater than the base amount for your filing status, a part of your benefits will be taxable.

The base amounts for figuring possible tax liability on benefits are:

$25,000 for single, head of household, or qualifying widow or widower with a dependent child.
$25,000 for married individuals filing separately and who did not live with their spouses at any time during the year.
$32,000 for married couples filing jointly.
Zero for married persons filing separately who lived together.

Generally, up to half of your benefits will be taxed if you exceed the base amounts. However, up to 85 percent of your benefits could be taxed if your income plus half of your Social Security checks exceed $34,000 if you are a single filer or $44,000 if you are married and file jointly.

You'll need to complete the work sheet found in your Form 1040 or 1040A instruction book (or in your tax software package) to find out the exact amount.

Let me know if you have any question.

 

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.

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