Do older adults have to pay income tax?

Date:

March 8, 2023

Categories:

Do older adults have to pay income tax?

Do older adults have to pay income tax when filing their 2022 tax return? There is no age at which you no longer have to submit a tax return and most senior citizens do need to file taxes every year. However, if Social Security is a person’s only form of income, then it is not taxable. In the case of a married couple who file jointly, this must be true of both spouses.

Note:  This information is from the Internal Revenue Service website, using “you” to refer to the taxpayer. In the case of family caregivers, substitute “your care receiver.” 

Some older adults have to pay federal income taxes on Social Security benefits. This usually happens only if the person has other substantial income in addition to Social Security benefits (such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return).

You will pay tax on only 85 percent of your Social Security benefits, based on IRS rules. If you:

  • file a federal tax return as an “individual” and your combined income is
    • between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits.
    • more than $34,000, up to 85 percent of your benefits may be taxable.
  • file a joint return, and you and your spouse have a combined income that is
    • between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits.
    • more than $44,000, up to 85 percent of your benefits may be taxable.
  • are married and file a separate tax return, you probably will pay taxes on your benefits.

Change of address

It’s important that the IRS is aware of your current mailing address. Notify us of your current mailing address immediately, so we may update our records.

Filing Form…

Not enclosing a payment
use this address…

Enclosing a payment
use this address…

1040
Addresses, by state, of all IRS Filing Forms

Department of the Treasury
Internal Revenue Service
Austin, TX  73301-0002

Internal Revenue Service
P.O. Box 1214
Charlotte, NC 28201-1214

Suggestion:  to avoid a late filing penalty, use a private delivery service like UPS, FedEx or Lone Star Overnight (probably the cheapest if you use ground service) to make sure your return is date stamped. 

Source:  https://www.irs.gov/


We hope this information is helpful to you in the important work you do as a family caregiver.
For more resources, subscribe to our free newsletter!

Print Friendly, PDF & Email

Related Posts