Long form or short form?

Forum|Forum|7 years ago
October 16, 2018
2 replies
22 views

My wife and I are both retired and drawing Social Security. Our combined income from SS is around $37,000. Our only other income for the year is her required minimum distribution from her IRA, which is about $2,000. We do not have enough deductions to itemize for 2018. Will we need to fill out the Form 1040 to accommodate the dividend and interest payouts from our retirement portfolio ( which is less than $1000 total payout) along with her RMD? Or will the short form accommodate for the dividends, interest and her RMD? Our combined total income for 2018 will be around $40,000.

DoninGA

Level 15

The Social Security benefits received plus the small amount of the other income will not be enough for you to be required to file a tax return. None of your income is taxable so there is no need to file a tax return. Unless you have had taxes withheld from the RMD then you should file for a tax refund.

Social Security Retirement/Disability/Survivors benefits becomes taxable when all your other income plus 1/2 your social security reaches:

Married Filing Jointly - $32,000
Single or Head of Household - $25,000
Married Filing Separately - 0

Standard deductions for 2018

Single - $12,000 add $1,600 if age 65 or older
Married Filing Separately - $12,000 add $1,300 if age 65 or older
Married Filing Jointly - $24,000 add $1,300 for each spouse age 65 or older
Head of Household - $18,000 add $1,600 if age 65 or older

jilglen

Level 2

long form

VolvoGirl

Level 15

Starting in 2018 the forms have changed. Under the new tax laws, there are no more simple Form 1040EZ or 1040A's. Everything goes on a little Form 1040 that has six extra "schedules" with it, and if you need any of those schedules, you are not able to use the Free Edition.

https://www.irs.gov/forms-pubs/about-form-1040

Critter

Level 15

Unless you had withholding from the RMD or you had health insurance thru the ACA you have no need or reason to file a return ... the interest/dividends that accumulate inside a retirement plan or IRA are NOT reported on an income tax return ... only the distribution is.