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Do we even have to file taxes? Ages 67 and 70 with no earned income.

All income is unearned, ie:  social security and VA compensation.
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1 Best answer

Accepted Solutions
Hal_Al
Level 15

Do we even have to file taxes? Ages 67 and 70 with no earned income.

You are not required to file.

Taxes are complicated. Saying you have no earned income is meaningless. Clarifying that  you have only social security and veterans benefits is definite. 

The previous answer is technically correct: Unearned income is still taxable.  For married filing jointly, you must file if your taxable income is more than $20,800 (23,300 since you are both over 65)

The answerer didn't pick up on your clarifiers. Veterans benefits are specifically excluded, from tax, by law. VA disability is not only not taxable. it does not even have to be reported.

Social security only becomes  taxable when added to sufficient other income. If you are otherwise required to file a tax return, you do need to enter it in Turbotax (TT). TT will determine the taxable portion.

Social security (including SSDI) becomes taxable when your income, including 1/2 your social security, reaches:

Married Filing Jointly(MFJ): $32,000

Single or head of household: $25,000

Married Filing Separately and lived with your spouse at any time during the tax year: $0

After TurboTax (TT) calculates the taxable portion of SS, it puts the total amount of SS on line 20a of form 1040 and the taxable amount on line 20b (lines 14a&b of form 1040A). TT also produces a worksheet  to show how the taxable amount is calculated. Although most people pay tax on 85% of their SS. it can be less for lower income taxpayers and even zero, as in your case.

How much  is "sufficient other income"? The simple answer is $20,600 (a married couple's  filing requirement). But the answer varies dependent on  filing status, age, the amount of your Social security, and whether you are claimed as a dependent by someone else.

So, if VA benefits and SS are your ONLY income, you do not need to file.

View solution in original post

8 Replies
Hal_Al
Level 15

Do we even have to file taxes? Ages 67 and 70 with no earned income.

You are not required to file.

Taxes are complicated. Saying you have no earned income is meaningless. Clarifying that  you have only social security and veterans benefits is definite. 

The previous answer is technically correct: Unearned income is still taxable.  For married filing jointly, you must file if your taxable income is more than $20,800 (23,300 since you are both over 65)

The answerer didn't pick up on your clarifiers. Veterans benefits are specifically excluded, from tax, by law. VA disability is not only not taxable. it does not even have to be reported.

Social security only becomes  taxable when added to sufficient other income. If you are otherwise required to file a tax return, you do need to enter it in Turbotax (TT). TT will determine the taxable portion.

Social security (including SSDI) becomes taxable when your income, including 1/2 your social security, reaches:

Married Filing Jointly(MFJ): $32,000

Single or head of household: $25,000

Married Filing Separately and lived with your spouse at any time during the tax year: $0

After TurboTax (TT) calculates the taxable portion of SS, it puts the total amount of SS on line 20a of form 1040 and the taxable amount on line 20b (lines 14a&b of form 1040A). TT also produces a worksheet  to show how the taxable amount is calculated. Although most people pay tax on 85% of their SS. it can be less for lower income taxpayers and even zero, as in your case.

How much  is "sufficient other income"? The simple answer is $20,600 (a married couple's  filing requirement). But the answer varies dependent on  filing status, age, the amount of your Social security, and whether you are claimed as a dependent by someone else.

So, if VA benefits and SS are your ONLY income, you do not need to file.

Do we even have to file taxes? Ages 67 and 70 with no earned income.

Unearned income is still taxable.  For married filing jointly, you must file if your taxable income is more than $20,000.   

Do we even have to file taxes? Ages 67 and 70 with no earned income.

Then what does this mean?  VA disability payments are not reported on a tax return.  Social Security Disability payments are reported on a federal tax return.  However, if Social Security is the only income that you would be reporting on a joint tax return, a federal tax return does not have to be filed.  If there is other income to report then enter the benefits reported on the SSA-1099 as follows:
Hal_Al
Level 15

Do we even have to file taxes? Ages 67 and 70 with no earned income.

It means exactly what it says. Certain types of income are treated differently in the tax code. That language describes how those two specific types of income are treated.
Unearned income, generally, is taxable. Mitt Romney, Warren Buffet and Donald Trump do pay tax on those dividends, capital gains, rentals and casino winnings.

Do we even have to file taxes? Ages 67 and 70 with no earned income.

I received a reply in my email, I think from Turbo Tax, maybe you but I don't know.  Here is what it says:  You are not required to file.

Taxes are complicated. Saying you have no earned income is meaningless. Clarifying that  you have only social security and veterans benefits is definite.

The previous answer is technically correct: Unearned income is still taxable.  For married filing jointly, you must file if your taxable income is more than $20,600.

The answerer didn't pick up on your clarifiers. Veterans benefits are specifically excluded, from tax, by law. VA disability is not only not taxable. it does not even have to be reported.

Social security only becomes  taxable when added to sufficient other income. If you are otherwise required to file a tax return, you do need to enter it in Turbotax (TT). TT will determine the taxable portion.

Social security (including SSDI) becomes taxable when your income, including 1/2 your social security, reaches:

Married Filing Jointly(MFJ): $32,000

Single or head of household: $25,000

Married Filing Separately and lived with your spouse at any time during the tax year: $0

After TurboTax (TT) calculates the taxable portion of SS, it puts the total amount of SS on line 20a of form 1040 and the taxable amount on line 20b (lines 14a&b of form 1040A). TT also produces a worksheet  to show how the taxable amount is calculated. Although most people pay tax on 85% of their SS. it can be less for lower income taxpayers.

How much  is "sufficient other income"? The simple answer is $20,600 (a married couple's  filing requirement). But the answer varies dependent on  filing status, age, the amount of your Social security, and whether you are claimed as a dependent by someone else.

So, is VA benefits and SS are your ONLY income, you do not need to file.  

So, I just want to be sure that I don't have to file as I have filed for the last couple of years and had no unearned/taxable income and didn't understand why I had to.  Both of us get Social Security and my husband gets 100 percent VA disability.
Hal_Al
Level 15

Do we even have to file taxes? Ages 67 and 70 with no earned income.

Yes, that is correct; you do NOT need to file. You did not need to file  the last couple of years either.

Do we even have to file taxes? Ages 67 and 70 with no earned income.

Okay, one more thing.  Live in Arkansas.  Do we have to file State Taxes?
Hal_Al
Level 15

Do we even have to file taxes? Ages 67 and 70 with no earned income.

No.  AR uses the federal  Gross Income; 0 in your case.

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