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
Terri Lynn
