Yes, if they bought out a lease and you were not selling a property, regardless of your age or time that you lived there, you would need to include this as taxable income. The factors that would affect whether or not you need to file a return are if your total taxable income with the buyout is greater than your standard deduction
To enter your income from the buyout click the following:
- Federal
- Income and Expenses
- Scroll down to Less Common Income and click Show More
- Start next to Miscellaneous Income
- Start next to Other Reportable Income
This will put it on line 8z of your schedule 1 as other income.
Your standard deduction if single would be $14,350 and if Married Filing a joint return with you both over 65 would be $28.700. If your total taxable income falls below the above amount, you would not need to file a return. If it is greater than your standard deduction, then yes, you will need to include the buyout and all other income on your return.
Depending on your total other income, the amount of your social security that is taxed will be 50% or 85%.
The easiest way to determine if you need to file, if you are unsure is to walk through the TurboTax questions and enter all of your income. Then look at line 15 of your return. If it is $0, you will not need to file a return. If it is more than $0, you will need to file a return.
You can see your 1040 by selecting the following: Tax Tools>>Tools>>View Tax Summary>>Preview My 1040.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
