Tax Tip Spotify Podcast and/or WordPress Blog Post and the Filing Requirements for Taxpayers Receiving Only Social Security

For tax years before 2020, when a taxpayer receiving only social security must file a return depends on three factors:

(1) the taxpayer’s gross income. Gross income means all income you received in the form of money, goods, property, and services that isn’t exempt from tax, including any income from sources outside the United States or from the sale of
your main home (even if you can exclude part or all of it).

• Don Fitch, CPA Practice Pointer – Single taxpayer: Do not include social security benefits unless one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000. Normally, Social Security payments do not amount to 50k; therefore, there is not a filing requirement when the taxpayer only receives Social Security.

• Don Fitch, CPA Practice Pointer – Married filing Jointly taxpayers: Do not include social security benefits unless one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $32,000. Normally, Social Security payments do not amount to 50k; therefore, there is not a filing requirement when the taxpayer’s only receive Social Security.

(2) the taxpayer’s filing status; and

(3) the taxpayer’s age.

A taxpayer’s filing status is determined on the last day of the tax year. If the taxpayer is 65 or older at the end of the year, the taxpayer can have a higher amount of gross income before being required to file a tax return. A taxpayer is considered 65 on the day before the taxpayer’s 65th birthday. Thus, if you were born on January 1, 1956, you are considered to be age 65 at the end of 2020.

DON FITCH, CPA
74478 Highway 111 #3
Palm Desert, CA 92260

Toll Free: (877)CPA-Help or (877)272-4357
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Email: DonFitchCPA@paylesstax.com
Website: http://www.paylesstax.com

(Updated 02/16/2021 15:03)