Tax question

[Cdnwmn 0]

Talking to my mother (she's Canadian) and she was saying that she was told American citizens over the age of 75 do not have to file an income tax return if they have a certain amount of income coming in. Only those over 75 with lots of money file. Does anyone have knowledge of this?

[Nicole72082 0]

I don't know anything official about this, but I know my grandma is only 73 and she doesn't have to file. Maybe the age starts at 65? She doesn't make that much a month either and her sister (75) who seems to be pretty loaded did have to file.

[Hilarious Clinton 452]

Three things must be considered when determining whether you have to file a return: your age, your filing status and your income. Generally, once you reach a certain income level, the law requires you to file. The amounts are adjusted annually for inflation.

For 2006 tax returns, individuals younger than age 65 must file if they make at least:

* $8,450 as single filers.

* $10,850 as head of household filers.

* $16,900 as married couples filing jointly and both husband and wife are younger than 65.

The earnings threshold amounts go up a bit for older (65-plus) individuals:

* $9,700 for single filers.

* $12,100 for head of household filers.

* $17,900 for married couples filing jointly where one spouse is age 65 or older.

* $18,900 for married couples filing jointly where both partners are 65 or older.

The earnings target is the same -- $3,300 -- for married couples filing separately, regardless of age.

Special circumstances

Speaking of age, the IRS has a filing gift for you if your 65th birthday was Jan. 1.

In most situations, your age for tax purposes depends on how old you were on the last day of the year. But when it comes to determining whether you have to file a return, the IRS says if you turned 65 on New Year's Day 2007, you are considered to be 65 at the end of 2006. That one-day grace period allows you to use the higher income thresholds to determine whether you must file a return this year. And that means you can have earned hundreds more last year and still not have to send in a return this April.

There also are separate income thresholds for taxpayers who have special filing considerations.

In some cases, widows or widowers younger than 65 who care for a dependent child can make up to $13,600 and not have to file a return. Individuals age 65 and older in this situation can earn up to $14,600. In the year a husband or wife dies, the surviving spouse still files a joint return. Then, if caring for a dependent child, he or she can use this status (rather than head of household with its lower earning limits) for two subsequent years as long as he or she does not remarry.

http://www.bankrate.com/brm/itax/news/taxg...ile-return1.asp

[Nikita2Charles 32]

To add to what Lucky said, it all depend on your tax bracket. As a student when i was in College work study, I sign a paper on my w4 to waive my taxes, therefore I got all my money up front, reason for that as a college student I didnt make much, so my income tax bracket or limit made me eligible. So For an elderly I would feel it's the same, but if that person has money coming from 401k, IRA and so on and the income is above the set limit, you definitely has to file taxes.

[Hilarious Clinton 452]

Plus if any money is withheld at all and you are still below the requirements to file. You would want to file just to get your money back.