The IRS typically requires you to file a tax return when your gross income exceeds the standard deduction for your filing status. These filing rules still apply to senior citizens who are living on Social Security benefits. If Social Security is your sole source of income, then you don't need to file a tax return.
If the sum of half your Social Security plus your adjusted gross income plus your tax-exempt interest and dividends exceeds $25,000 (or $32,000 if you are married filing jointly), then a portion of your Social Security benefits are included in gross income.
For tax year 2021, unmarried seniors will typically need to file a return if:
- you are at least 65 years of age, and
- your gross income is $14,250 or more.
However, if your only income is from Social Security benefits, you don't include these benefits in your gross income. If this is the only income you receive, then your gross income equals zero, and you typically don't have to file a federal income tax return.
If you are married and file a joint return with a spouse who is also 65 or older, you must file a return if your combined gross income is $27,800 or more.
For stimulus, while IRS uses the last filed return for latest information, it would be a good idea to file with the latest info like address and banking information so that in future, IRS can use that info.
