Solved: How much annual earnings are tax exempt for persons 67 years of age or older?
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stellathecaring
New Member

How much annual earnings are tax exempt for persons 67 years of age or older?

 
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Accepted Solutions
xmasbaby0
Level 15

How much annual earnings are tax exempt for persons 67 years of age or older?

Up to 85% of your Social Security benefits can be taxable.  There is no age limit for having to pay taxes on Social Security benefits if you have other sources of income along with the SS benefits.  When you have other income such as earnings from continuing to work, investment income, pensions, etc. up to 85% of your SS can be taxable. 

 What confuses people about this is that before you reach full retirement age, if you continue working while drawing SS, your benefits can be reduced if you earn over a certain limit. (For 2017 that limit is $16,920)  After full retirement age, no matter how much you continue to earn, your benefits are not reduced by your earnings; your employer will still have to withhold for Social Security and Medicare.

You need to file a federal return if half your Social Security plus your other income is $25,000 when filing single or head of household, or $32,000 when filing married filing jointly.

To see how much of your Social Security was taxable, look at line 14b of your 1040A, or line 20b of your 1040

https://ttlc.intuit.com/questions/1899144-is-my-social-security-income-taxable

Some additional information:  There are a few states that tax Social Security—Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana,Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont, and West Virginia.


**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

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5 Replies
xmasbaby0
Level 15

How much annual earnings are tax exempt for persons 67 years of age or older?

Up to 85% of your Social Security benefits can be taxable.  There is no age limit for having to pay taxes on Social Security benefits if you have other sources of income along with the SS benefits.  When you have other income such as earnings from continuing to work, investment income, pensions, etc. up to 85% of your SS can be taxable. 

 What confuses people about this is that before you reach full retirement age, if you continue working while drawing SS, your benefits can be reduced if you earn over a certain limit. (For 2017 that limit is $16,920)  After full retirement age, no matter how much you continue to earn, your benefits are not reduced by your earnings; your employer will still have to withhold for Social Security and Medicare.

You need to file a federal return if half your Social Security plus your other income is $25,000 when filing single or head of household, or $32,000 when filing married filing jointly.

To see how much of your Social Security was taxable, look at line 14b of your 1040A, or line 20b of your 1040

https://ttlc.intuit.com/questions/1899144-is-my-social-security-income-taxable

Some additional information:  There are a few states that tax Social Security—Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana,Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont, and West Virginia.


**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

View solution in original post

Hal_Al
Level 15

How much annual earnings are tax exempt for persons 67 years of age or older?

The only thing that changes, about thge amount of your income subject to tax,  at age 65, is a slightly higher standard deduction. Other than that, you are subject to the same income tax rules as everybody else.

There is a credit for the elderly or disabled (you don't have to be both). But because it has not been adjusted for inflation since 1983, very very few people qualify. If you qualify, TurboTax (TT) will automatically calculate it.
SweetieJean
Level 15

How much annual earnings are tax exempt for persons 67 years of age or older?

You cannot qualify for EIC without any dependents if you are age 65+.
State tax rules may be different for age 65+.
DoninGA
Level 15

How much annual earnings are tax exempt for persons 67 years of age or older?

There is no exemption from taxes based on age on a federal tax return.  Some states have retirement income exclusions.

You do receive an extra amount added to your federal standard deduction if you are age 65 or older.

Standard deductions for 2017 

  • Single - $6,350 add $1,550 if age 65 or older
  • Married Filing Separately - $6,350 add $1,250 if age 65 or older
  • Married Filing Jointly - $12,700 add $1,250 for each spouse age 65 or older
  • Head of Household - $9,350 add $1,550 if age 65 or older
Critter
Level 15

How much annual earnings are tax exempt for persons 67 years of age or older?

2017 Gross income requirements for each filing status are:
  • Single: 10400 if under age 65. 11950 if 65 and older.
  • Married filing jointly: 20800 if both under 65. ...
  • Married filing separately — 4050 at any age.
  • Qualifying widow(er) with a dependent child: 16750 if under 65. ...
  • Head of household: 13400 if under 65.
Stay below the filing requirement then all your income is tax free.

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