Bluefalcon77 you asked : What is the maximum interest one can earn without paying federal taxes, while receiving social security.
Great question, Bluefalcon77.
To answer this question, you must first determine if you have a filing requirement for the year.
If you are married and file a joint return with a spouse who's also 65 or older, you'll need to file a return if your combined adjusted gross income is $28,700 or more.
If your spouse is under 65 years old, then the threshold amount decreases to $27,300.
Keep in mind that these income thresholds were based on the 2022 tax year, rules, and generally increase slightly each year.
If you do have a filing requirement, then you will need to consider the following information:
Most interest that you receive is taxable income in the year it becomes available to you. However, some interest you receive may be tax-exempt. You should receive Copy B of Form 1099-INT or Form 1099-OID reporting payments of interest and/or tax-exempt interest of $10 or more. You must report all taxable and tax-exempt interest on your federal income tax return, even if you don't receive a Form 1099-INT or Form 1099-OID. if you are required to file a tax return.
For more information about interest and the specific types of taxable and tax exempt interest, please check out the following page at IRS.gov:
https://www.irs.gov/taxtopics/tc403Please let me know if this information was helpful and let me know if you have any additional questions.
Thanks
Terri
Please feel free to reach out with any additional questions and
thank you so much for attending!
Please have an amazing rest of your day!
Terri H.
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