Welcome! | Ask A Question

 
 
 
 
Question

Asked 2/20/2008

Retirement income tax

If you are retired, and over 65 years old, do you still have to file income tax each year if your only income is social security, and retirement check?

 
 
 
 
 
Answers

Answer 1/2 - Submitted 3/1/2010

Generally, if you receive income other than social security you will have to file a tax return. Part of your social security maybe taxable if your income is greater than the base set for 2009.

$32,000 for married couples filing jointly.

$25,000 for single, head of household, qualifying widow/widower with a dependent child, or married individuals filing separately who did not live with their spouses at any time during the year.

There are other considerations that may come into plan, I suggest you check out the IRS web site for more details, there is a special section just for seniors.
http://www.irs.gov/individuals/retirees/index.html

 
 

Answer 2/2 - Submitted 10/13/2011

Tax time is just around the corner again, so it's wise to keep note of when you need to file in retirement. Generally, it's smart to file if you have any income besides Social Security. Disbursements from retirement accounts, pensions, interest on investments, and other types of income are all considered taxable. This makes you subject to paying income tax.

In your case, the retirement check is probably a pension. If so, this is taxable. Check the stub or statement included with your pension check to see if taxes are deducted in advance. Sometimes they are, in which case you won't necessarily need to file. In other cases, there is no deduction, and it's likely you will have to file and pay the income tax.

Don't forget to follow up with state income taxes too, unless you're lucky enough to be in a state without one. Many types of retirement income miss taking out these taxes off the top, both from the Federal and state level. Even if you owe no tax, it doesn't hurt to file. You may qualify for credits that differ from year to year, or receive a surprising refund. It also gives you evidence to cite in case you receive a notice from the IRS wanting money after pulling an incorrect audit on you.

 
 
 
 
Answer This Question Now

Type your Answer in the box below and post your answer.

Learn more about how this works

 
 
 

Related Questions (Ask a New Question)

 
K-1 income and schedule c income retirement contributions?

I have k-1 income of 500,000 from llc. i also have schedule c income of $500,000 from sole prop. can i contribute to my retirement plan $46,000 from schedule c and $46,000 from k-1 income, or am i limited to $46,000 total? there are no employees.

See Answers

 
How much tax is taken from my 401k if i take it out in a lump sum upon retirement?

I am in the fers retirement system. i wish to withdraw my 401k in a lump sum upon retirement. i was wondering what percentage of tax the government will take from it.

See Answers

 
No state income tax move to state w/ income tax

My husband worked in fl for 18 yrs and built up his 401k. whe moved to nc 2 yrs ago. funds were short and we withdrew the money and paid federal income tax and penalties. nc state wants to charge state tax on that money even though it was earned (and sat in an account for years) in fl. do we have...

See Answers

 
Related Questions

K-1 income and schedule c income retirement contributions?


I have k-1 income of 500,000 from llc. i also have schedule c income of $500,000 from sole...

 

How much tax is taken from my 401k if i take it out in a lump sum upon retirement?


I am in the fers retirement system. i wish to withdraw my 401k in a lump sum upon retirement....

 

No state income tax move to state w/ income tax


My husband worked in fl for 18 yrs and built up his 401k. whe moved to nc 2 yrs ago. funds...

 

Retirement inheritence


I have recenty inherited my fathers retirement. part is 401k and the rest in invested in...

 

Income tax


I recieved benefits form a 401k plan my mother had, they included this in my income listed...

 

What is the penalty for pulling out on a 401k?


Example. if we have $15,000 in a 401k and draw it out before retirement. what percentage...

 
 

See more 401k questions

 
 
 
 
 

Ask A Question

Ask a new question about
401k: