@ots0108 wrote:
Correct, they only have social security benefits and no other income to report. So, what happens if my mom gets a side job in 2020 and earns income... there would be a potential gap in tax reporting... will that be a problem?
No, there is no issue if she works in 2020. The income would be reported on their 2020 tax return and the SS benefits received in 2020 would also be reported on the 2020 return. If she has reached full retirement age then there is no reduction in her benefits, she can earn as much as she wants.
See this SS website for information - https://www.ssa.gov/planners/retire/whileworking.html
Based on the amount of earnings, some of the SS benefits can become taxable -
Up to 85% of Social Security Retirement/Disability/Survivors benefits becomes taxable when all your other income plus 1/2 your social security reaches:
- Married Filing Jointly - $32,000
- Single or Head of Household - $25,000
- Married Filing Separately - 0
