On social security

Forum|Forum|2 years ago
July 26, 2023
1 reply
31 views

I am retired and social security is my only income (around $29K before Medicare deduction). Do I have to submit a tax return at all?

I am carrying a loss from a couple of years back when the crypto exchange I was using was effectively closed down. Can I just not file but then use that loss if I try trading again some years in the future?

Great appreciation for your assistance !

Ask the Experts - Retirement - July 2023

Best answer by KarenL4

Hi,

You do not have to file a federal tax return if you only had social security income (and no other income sources). Whether or not you have to file a state return will depend upon your state.

While I find some support that you might be able to document the carryforward loss in future years without filing the intervening years, it would not be best practice in any case. I recommend you file taxes each year as a best practice to substantiate the carryforward loss. You can do so using IRS Free File software, since your income will be below the threshhold if it is only SS income.

This article also talks about the taxability of social security income in general.

Please cheer by clicking the thumb icon in a post, and if this answers your question, select “Mark as best answer.”

Best,

Karen

KarenL4

Answer

Employee Tax Expert

Hi,

You do not have to file a federal tax return if you only had social security income (and no other income sources). Whether or not you have to file a state return will depend upon your state.

This article also talks about the taxability of social security income in general.

Please cheer by clicking the thumb icon in a post, and if this answers your question, select “Mark as best answer.”

Best,

Karen

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"