Should a retired individual file a tax return if he is receiving a pension from the union in addition to social security benefits?

[kerriP · Accepted solution]

That depends on the amount of your pension and the amount of your social security income.  

To find out whether any of your benefits may be taxable, compare the base amount for your filing status with the total of:

• One-half of your SS benefits; plus
• All of your other income, including tax-exempt interest.

The base amount for your filing status is:

• $25,000 if you're single, head of household, or qualifying widow(er),
• $25,000 if you're married filing separately and lived apart from your spouse for the entire year,
• $32,000 if you're married filing jointly,
• $0 if you're married filing separately and lived with your spouse at any time during the tax year.

Example:                       Base Amount-Single $25,000

Social Security              $22,000  x .5  = $11,000

Other Income  pension                           $13,000

 Base Amount       (25,000)                     $24,000  compare to $25,000 since less, NO                                                                       SS is taxable.

The only potentially taxable income would be the Union Pension of $13,000.  Filing requirement Single age 65 or older  is $11.650.

In this situation there was more pension income  $13,000 than the minimum filing requirement.  Therefore a retur is required.

[shinbo_25]

Thank you very much for answering my question. That helped a lot.

[kerriP]

That depends on the amount of your pension and the amount of your social security income.  

To find out whether any of your benefits may be taxable, compare the base amount for your filing status with the total of:

• One-half of your SS benefits; plus
• All of your other income, including tax-exempt interest.

The base amount for your filing status is:

• $25,000 if you're single, head of household, or qualifying widow(er),
• $25,000 if you're married filing separately and lived apart from your spouse for the entire year,
• $32,000 if you're married filing jointly,
• $0 if you're married filing separately and lived with your spouse at any time during the tax year.

Example:                       Base Amount-Single $25,000

Social Security              $22,000  x .5  = $11,000

Other Income  pension                           $13,000

 Base Amount       (25,000)                     $24,000  compare to $25,000 since less, NO                                                                       SS is taxable.

The only potentially taxable income would be the Union Pension of $13,000.  Filing requirement Single age 65 or older  is $11.650.

In this situation there was more pension income  $13,000 than the minimum filing requirement.  Therefore a retur is required.