Federal Tax Filing Requirement Question

[21Rte]

My Mother is 96 years old, widowed, and retired.  Between her SS and her deceased husband's pension checks, she had approx $24K in income in 2020.  There is no Federal Taxes being taken out of either her SS or Pension checks.  Is she required to file a tax return for 2020?

[RayW7 · Accepted solution]

She would probably need to file based on her husband's pension checks. 

If Social Security was the only income she received, then your gross income equals zero, and you don't have to file a federal income tax return.

The minimum income amount depends on your filing status and age. In 2020, for example, the minimum for single filing status if under age 65 is $12,400. If your income is below that threshold, you generally do not need to file a federal tax return.

-follow these link(s) for additional information-

When Does a Senior Citizen on Social Security Stop Filing ...

Publication 554 (2020), Tax Guide for Seniors | Internal ...

[21Rte]

Thank you for the response and the links to additional information.  Based on what I read under the TT Link for Seniors Filing, it appears she does not need to file.  I came to this conclusion based on her TOTAL income being $21k, but $15.5K of that is her SS income.  Since you do not include SS income in the AGI calculation, her actual AGI is only $5.5K, which is well below the $14,050 AGI limit for determining when a Senior, over 65, would need to file or not.  Does this sound correct?

[gloriah5200]

In one note, you state her income to be 24K and in another you state it to be 21K.  Not sure which is correct.

However, going on your most recent comment that her social security income was $15.5K and even subtracting that from the larger amount of $24K would calculate her pension income to be $8,500, since you did not tell us the exact amount.

When comparing to the Chart A filing requirements for most people, if she is single and was 65 or older, then she is required to file a return if her gross income was at least $14,050, which it is not.

You would not include the social security income in the gross income to determine filing requirements unless one of the two exceptions occur:

• a. she is married filing a separate return and lived with her spouse at any time during 2020, or
• b. one-half of her social security benefits plus her other gross income and any tax-exempt interest is more than $25,000.

If we check b. above, half of her social security income is $7,750, so if adding $7,750 + 8,500= $16,250 is less than $14,050, so she is not required to file a return.

However, by filing a return, it will give IRS a chance of seeing her return for the purpose of the distribution of stimulus checks in the future, 

I do not know what state your  mother resides in, but you might consider looking into the state filing requirements, especially if there are any refundable credit opportunities available in that state for her.

[21Rte]

Thank you for the detailed reply.  It does confirm what I read and my calculations.

To clarify a few things for the benefit of your reply and others, in my original post, I mistakenly listed her Total Income (including her SS income) as $24K.  When I re-reviewed all her files, it was actually $21K, as I correctly stated in my second post.  So, subtracting her SS income of $15.5K from that $21K, her true AGI for calculating if she needs to file or not (which excluded her SS income) is only $5.5K, which as you noted, is way below the $14,050 filing threshold for someone single and over the age of 65.  In reality, her husband passed away several years ago and she has never remarried, so technically, her filing status would not be Single, but as a Qualified Widow, which bumps that threshold filing requirement number up to $26,100 per IRS Publication 554.  She is also still well below the $25,000 limit number if you do the 1/2 her SS income plus her total AGI including interest calculation: (($15,500/2) + $5,500) = $13,200 < $25,000.

[gloriah5200]

Unfortunately, her filing status would be single because the "Qualifying Widow with Dependent child", not just "qualifying widow", is the status you are referring to which she probably does not qualify to use.

The Qualifying widow with dependent child filing status requires her to have a qualifying dependent child and can only be used for two years following the death of her spouse.

Please see the following information from irs.gov:

Here’s a list of the five filing statuses:

1. Single. Normally this status is for taxpayers who aren’t married, or who are divorced or legally separated under state law.
2. Married Filing Jointly. If taxpayers are married, they can file a joint tax return. If a spouse died in 2016, the widowed spouse can often file a joint return for that year.
3. Married Filing Separately. A married couple can choose to file two separate tax returns. This may benefit them if it results in less tax owed than if they file a joint tax return. Taxpayers may want to prepare their taxes both ways before they choose. They can also use this status if each wants to be responsible only for their own tax.
4. Head of Household. In most cases, this status applies to a taxpayer who is not married, but there are some special rules. For example, the taxpayer must have paid more than half the cost of keeping up a home for themselves and a qualifying person. Don’t choose this status by mistake. Be sure to check all the rules.
5. Qualifying Widow(er) with Dependent Child. This status may apply to a taxpayer if their spouse died during 2014 or 2015 and they have a dependent child. Other conditions also apply.

Please refer to the following link with any additional questions.

Filing Status' per IRS.gov

[SweetieJean]

State filing requirements may be different.