Retired Seniors and Filing Requirements

At what age is Social Security not taxable?

Social Security can potentially be subject to tax regardless of your age if your income exceeds a certain level.

Basically, if your taxable income is greater than the Standard Deduction for your filing status, you’ll typically have to file a tax return. This means that seniors on Social Security whose income exceeds the Standard Deduction will need to determine if some of their Social Security benefits need to be included in their taxable income for federal taxes as well as for taxes in certain states.

When do Seniors have to file a tax return?  As an example, we will use an MFJ scenario.

For a married couple filing jointly, over the age of 65, the standard deduction would be $30,700.  If half of your total social security income, plus any other retirement income, earnings from employment, interest, or dividend income, etc., total more than the $30,700 you are required to file a federal tax return.  States vary as some do not count Social Security, they may have a lower, or higher, Standard Deduction, or a variety of other rules.

The dollar amounts always change, and in previous years included the standard deduction plus exemptions.  Always contact your tax preparer, it is even better to reach out to that TAX PLACE!

Retirement and Taxes