Personal Finance and Investing

question everything

(52,122 posts) Mon Mar 30, 2026, 02:26 PM 5 hrs ago

Who needs to file an income tax return?

A family member claims that since they do not owe any tax they don't need to file.

I have no idea about their financial situation except that their sole source of income is from Social Security - cannot be much - and perhaps some savings.

From the irs.gov a bit confusing.

First

If your filing status is: File a tax return if your gross income is:

If you were 65 or older at the end of 2025

Single $17,550 or more

But then,

File a tax return if any of these apply:

Single age 65 and up

Unearned income over $3,350
Earned income over $17,750
Gross income was more than the larger of:

$3,350, or
Earned income (up to $15,300) plus $2,450

https://www.irs.gov/individuals/check-if-you-need-to-file-a-tax-return

So which is it? Again, I have no idea the SS benefits but if they were less $3,350 then they don't need to file?

Of course, there is that extra $6,000 of deductions that most seniors get.

Senior deduction (enhanced deduction for seniors)

If an individual is at least 65 years old, they may be able to deduct up to $6,000. If their spouse is also 65 or older, they can claim up to $12,000 and must file jointly.

So probably should file just for this "goody."

https://www.irs.gov/newsroom/schedule-1-a-additional-deductions-what-to-know-about-the-new-form

3 replies

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Highlight:

Who needs to file an income tax return? (Original Post) question everything 5 hrs ago OP

there is a worksheet on the back of the 1099 rampartd 5 hrs ago #1

They should see if any credits are available ALBliberal 5 hrs ago #2

I knew two young women, both with children. One had a tax preparer and got $thousands from the earned income tax credit progree 3 hrs ago #3

rampartd

(4,613 posts)

1. there is a worksheet on the back of the 1099

Reply to question everything (Original post)

Mon Mar 30, 2026, 02:36 PM

5 hrs ago

if the only income is social security it will tell you to file or not.

the senior deduction is also on a worksheet with that 6k/12k being maximums.

ALBliberal

(3,338 posts)

2. They should see if any credits are available

Reply to question everything (Original post)

Mon Mar 30, 2026, 02:44 PM

5 hrs ago

Many people “feel” they don’t need to file. But? There are refundable credits out there on the federal and state level they may be missing out on. Elderly and disabled credits on federal level refer to IRS publication 524. State rules vary but in NM there are low income credits available.

Doubt they would get notices for not filing. But? IRS and state won’t let them know if they had any credits coming.

And? Is it worth paying a preparer to get the credits?

Probably not.

Hope that helps.

progree

(12,967 posts)

3. I knew two young women, both with children. One had a tax preparer and got $thousands from the earned income tax credit

Reply to question everything (Original post)

Mon Mar 30, 2026, 04:15 PM

3 hrs ago

Last edited Mon Mar 30, 2026, 07:48 PM - Edit history (1)

and child tax credit every year. She paid nothing in during the year -- no withholding, no estimated tax, she's self-employed (so no employer paid in anything). And that $thousands was left over after paying SS taxes, which was handled in the income tax filing.

Also got a big amount from the state (Minnesota)

I suspect her tax preparer was uhh, savvy, in maximizing her bounty.

The other young woman, self-employed was "off the books" completely, didn't file taxes.
Didn't get nothing
And no Social Security credit for working those years, so her eventual benefit will be not good (fortunately she does have some years when she was employed and SS taxes were paid via withholding).

Moral of the story - not having to file taxes does not mean it is in one's economic interest not to do so. And don't make this decision based on some worksheet or magazine article.

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