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I'm 55 and get $735.00 per mo. from soc sec disability. I'm a dependent on my caregivers return. I receive $205.00 per mo from a pension. Do I need to file a tax return?

 
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1 Best answer

Accepted Solutions
Hal_Al
Level 15

I'm 55 and get $735.00 per mo. from soc sec disability. I'm a dependent on my caregivers return. I receive $205.00 per mo from a pension. Do I need to file a tax return?

Simple answer: Yes.

The explanation (like all tax issues) may not  be so simple.  Since you are a dependent on someone else's return, you are only allowed a standard deduction of $1050* and no personal exemption. So, with $2460 of pension income, you will have $1410 of taxable income (2460-1050=1410). None of your social security will be taxable or reportable (see more explanation below). You will owe $141 federal tax.

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 SS disability income) 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 (including dependents)

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; 0 in your case.

*For 2018, the standard deduction amount for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of $1,050 or the sum of $350 and the individual’s earned income (not to exceed $12,000). Pension income is not normally considered earned income. However, if the pension income is classified as disability income (code 3 in box 7 of the 1099-R or you received a W-2), and you have not reached your employer's minimum  retirement age, the income is earned income and you do not have to file a tax return.

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10 Replies

I'm 55 and get $735.00 per mo. from soc sec disability. I'm a dependent on my caregivers return. I receive $205.00 per mo from a pension. Do I need to file a tax return?

Which state?
Carl
Level 15

I'm 55 and get $735.00 per mo. from soc sec disability. I'm a dependent on my caregivers return. I receive $205.00 per mo from a pension. Do I need to file a tax return?

Nope. So long as your total income from all sources for the tax year is under $12,000 you have no need or requirement to file a federal tax return. If your state taxes personal income, the rules for that may be different.
The only reason you would file a federal return, would be to get a refund of any taxes withheld (if any) from the income you receive.

I'm 55 and get $735.00 per mo. from soc sec disability. I'm a dependent on my caregivers return. I receive $205.00 per mo from a pension. Do I need to file a tax return?

This does not apply to OP, but one must file a Federal tax return if one has more than $400 in self-employment income.
Carl
Level 15

I'm 55 and get $735.00 per mo. from soc sec disability. I'm a dependent on my caregivers return. I receive $205.00 per mo from a pension. Do I need to file a tax return?

Why does it not apply in this case? I see nothing to indicate self employment income here.

I'm 55 and get $735.00 per mo. from soc sec disability. I'm a dependent on my caregivers return. I receive $205.00 per mo from a pension. Do I need to file a tax return?

She's saying , it DOESN"T apply in this situation, but depending on the type of income would change the $ amounts you posted above.
♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪
rjs
Level 15
Level 15

I'm 55 and get $735.00 per mo. from soc sec disability. I'm a dependent on my caregivers return. I receive $205.00 per mo from a pension. Do I need to file a tax return?

You must file a federal tax return if you received advance premium tax credit for health insurance, regardless of income.

I'm 55 and get $735.00 per mo. from soc sec disability. I'm a dependent on my caregivers return. I receive $205.00 per mo from a pension. Do I need to file a tax return?

 "So long as your total income from all sources for the tax year is under $12,000 you have no need or requirement to file a federal tax return." is not true for the general reader...hence, my clarification.
Carl
Level 15

I'm 55 and get $735.00 per mo. from soc sec disability. I'm a dependent on my caregivers return. I receive $205.00 per mo from a pension. Do I need to file a tax return?

Ummmmm.... you didn't specify general reader. You said didn't apply to the OP. 🙂
Hal_Al
Level 15

I'm 55 and get $735.00 per mo. from soc sec disability. I'm a dependent on my caregivers return. I receive $205.00 per mo from a pension. Do I need to file a tax return?

Simple answer: Yes.

The explanation (like all tax issues) may not  be so simple.  Since you are a dependent on someone else's return, you are only allowed a standard deduction of $1050* and no personal exemption. So, with $2460 of pension income, you will have $1410 of taxable income (2460-1050=1410). None of your social security will be taxable or reportable (see more explanation below). You will owe $141 federal tax.

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 SS disability income) 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 (including dependents)

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; 0 in your case.

*For 2018, the standard deduction amount for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of $1,050 or the sum of $350 and the individual’s earned income (not to exceed $12,000). Pension income is not normally considered earned income. However, if the pension income is classified as disability income (code 3 in box 7 of the 1099-R or you received a W-2), and you have not reached your employer's minimum  retirement age, the income is earned income and you do not have to file a tax return.

Hal_Al
Level 15

I'm 55 and get $735.00 per mo. from soc sec disability. I'm a dependent on my caregivers return. I receive $205.00 per mo from a pension. Do I need to file a tax return?

Answer revised (added last paragraph)
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