Filing Taxes After Retirement

Filing Taxes After Retirement

- in Finance
Comments Off on Filing Taxes After Retirement

They say the only things certain are death and taxes.  But new tax laws can leave a person uncertain about whether to file or not.  This is especially true when you are a senior citizen and still have money coming in.   The tax filing season has arrived and already many people are wondering if they must pay taxes if they retired last year.  Being retired does not mean you meet the definition of senior citizen, and it is this distinction that can determine whether you have to file.  If you are over the age of 65, or for tax purposes, if you were born on January 1, 1952, you are considered aged 65 at the end of 2016.

 The IRS states that you must file a tax return if your gross income exceeds the sum of the standard deduction for your filing status, plus one exemption.  There are many charts available online to help you determine what your status is.  As a senior, remember that if you are unmarried and at least 65 years old, you must file a tax return if your gross income is over $11,850.

If you made that much money on your job, you will have to file a tax return and pay any outstanding taxes on that amount.  If you are getting Social Security income, and income from a job that together totals $11,850, you will not have to file, because you do not count your Social Security income in the gross amount you use to determine your liability.  And the income from your job would be below the threshold for filing.

If you are married and file a joint return with a spouse who is over 65, you will have to file a return if together your income is $23,100 or more.  The amount drops slightly to $21,850 if your spouse is under the age of 65.

The smartest thing to do if you are uncertain about paying taxes and tax thresholds is to consult the services of a company like H&R Block.  It’s even smarter if you use the Groupon site to do so, because you can save lots of money on the services they offer.  Groupon has deals that let you save $25 off online filing, 30% off H&R Block software and deals that allow you to file for free.  You can even qualify for a refund advance.  Using the services of tax professionals like H&R Block will ensure you comply with all state and federal tax codes, and they’ll review your taxes for free.

Don’t waste time trying to figure out all the latest tax laws and deadlines.  Let the money saving power of Groupon go to work for you, and get your taxes done right the first time.