Community ClicksDear Savvy Senior,
What are the 2009 IRS minimum filing requirements for seniors?
My income was very low last year and Im thinking I may not have to file tax returns this year. What can you tell me?
–Exempted Eddie
Dear Eddie,
There are millions of seniors in your same situation. In fact, according to the Tax Policy Center, around 55 percent of Americans over age 65 wont have to file income tax returns this year mainly because their incomes are under the IRS filing requirements.
Heres what you should know.
2009 filing requirements
If your “gross income” is below the 2009 IRS filing limits, you dont have to file a federal tax return this year.
Gross income includes all the income you receive that is not exempt from tax, not including Social Security benefits, unless you are married and filing separately.
Heres an income breakdown for each filing status.
>>> Single: If your 2009 gross income was less than $9,350 ($10,750 if youre 65 or older), you dont have to file.
>>> Married filing jointly: You dont need to file if your gross income was under $18,700.
If you or your spouse is 65 or older the limit increases to $19,800.
And if youre both over 65, your income must be under $20,900 to not file.
>>> Head of household: If your gross income was below $12,000 ($13,400 if age 65 or older), you dont have to file.
>>> Married filing separately: At any age, you must file if your income was at least $3,650.
>>> Qualifying widow(er) with a dependent child: If your gross income was less than $15,500 ($16,150 if age 65 or older), you dont need to file.
Note:
Just because youre not required to file a federal tax return doesnt necessarily mean youre also excused from filing state income taxes.
Check on that with your state tax agency before concluding youre entirely in the clear.
For links to state and local tax agencies see www.taxadmin.org
click on “Links.”
Senior tax credits
If you find that your gross income is more than the IRS filing limits, youll need to file a federal tax return.
But depending on your income level, you may be eligible for an elderly tax credit, which can amount to as much as $750 for a single taxpayer and up to $1,125 for a couple.
To qualify, you must be 65 or older (or under 65 and disabled), a U.S. citizen, and your adjusted gross income must be less than $17,500 for a single filer, and the non-taxable part of your Social Security or other nontaxable pensions, annuities or disability income must be less than $5,000.
Or, if youre married and are filing jointly and you both qualify, your income will need to be less than $25,000, and your nontaxable Social Security or other nontaxable pensions must be under $7,500.
To claim the credit youll need to file either Schedule R, if you are filing Form 1040, or Schedule 3, if you are filing Form 1040A.
To learn more, see IRS publication 524 “Credit for the Elderly or Disabled” at www.irs.gov/pub/
irs-pdf/p524.pdf, or call 800-829-3676 and have them mail you a copy.
Tax prep help
If you do need to file a tax return, you can get help through the IRS sponsored Tax Counseling for the Elderly (TCE).
This program provides free tax preparation and counseling to middle and low income taxpayers, age 60 and older.
Phone 800-906-9887 to locate a service near you.
Also check with AARP, a participant in the TCE program that provides free tax preparation at more than 7000 sites nationwide.
To locate an AARP Tax-Aide site call 888-227-7669 or visit www.aarp.org/money/taxaide.
Savvy tips
If you have tax questions the IRS offers a helpline at 800-829-1040, or visit a nearby IRS Taxpayer Assistance Center (click on www.irs.gov/localcontacts) where you can get face-to-face help for free.
For additional information and for for a variety of tax tips for seniors see www.irs.gov/individuals/
retirees.
