If we move from Texas to California and my husband has a pension, i understand we have to report income to the state of California but do you actually pay anything after a certain age? My mom always gets her money back, i understood it was because she was over 65. Is this true? My husband is 68.
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Hi lvazquez2014,
It is a common misconception that we are not liable for taxes after a certain age. It really has nothing to do with age, but with the amount of taxable income that you receive during the tax year. Since you are married, you are allowed $25900 as a federal standard deduction (the first $25900 of your 2022 taxable income is tax free). Any amount of taxable income above this amount is indeed taxable on your federal return.
Since Texas has no state income tax, no need to file a TX return, but if you move to CA, the standard deduction for a married couple in 2022 is only $10404. Any taxable income exceeding this amount will indeed be taxed by the state of CA for any period of residency.
Hi lvazquez2014,
It is a common misconception that we are not liable for taxes after a certain age. It really has nothing to do with age, but with the amount of taxable income that you receive during the tax year. Since you are married, you are allowed $25900 as a federal standard deduction (the first $25900 of your 2022 taxable income is tax free). Any amount of taxable income above this amount is indeed taxable on your federal return.
Since Texas has no state income tax, no need to file a TX return, but if you move to CA, the standard deduction for a married couple in 2022 is only $10404. Any taxable income exceeding this amount will indeed be taxed by the state of CA for any period of residency.
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