{"id":6771,"date":"2018-12-08T11:14:46","date_gmt":"2018-12-08T11:14:46","guid":{"rendered":"http:\/\/13.40.31.108\/?p=6771"},"modified":"2018-12-08T11:14:50","modified_gmt":"2018-12-08T11:14:50","slug":"irs-no-required-to-declare","status":"publish","type":"post","link":"https:\/\/ustaxconsultants.es\/es\/irs-no-required-to-declare\/","title":{"rendered":"IRS: No required to declare!"},"content":{"rendered":"\n<p>Here&#8217;s\nwhy some retirees no longer have\nto file a tax return<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Retirees whose only source of income is\nSocial Security generally will not owe any federal taxes and therefore don&#8217;t\nneed to file a return with the IRS.<\/li><li>Even some people with taxable sources of\nincome end up owing nothing, due to how Social Security benefits are taxed and\nthe higher standard deductions for those age 65 and older.<\/li><\/ul>\n\n\n\n<p>Forsome retirees, there&#8217;s an unanticipated freedom thatcomes with aging: not having to file a federal tax return.<\/p>\n\n\n\n<p>Dueto a combination of limited taxation on Social Security benefits,the tax-free status of some other retirement income \u2014 i.e., Roth IRAs \u2014 andother tax breaks for older Americans, retirees can reach a point where they owenothing at tax time and therefore are off the hook for filing.<\/p>\n\n\n\n<p>The\nbottom line is this: Retirees whose only source of income is Social Security\ngenerally have no taxes due and therefore don&#8217;t need to file a return. For\nothers it depends.<\/p>\n\n\n\n<p>It&#8217;s\na very common experience for more modest [earners], they&#8217;re incredulous when it\nhappens, because they&#8217;ve filed returns for 50 or 60 years and it&#8217;s the end of\nan era<\/p>\n\n\n\n<p>For\nstarters the IRS uses your \u00abcombined income\u00bb to determine how much of\nyour Social Security benefits are taxable, if any. To arrive at that amount,\nadd one-half of your benefits to your adjusted gross income and nontaxable\ninterest (i.e., from municipal bonds).<\/p>\n\n\n\n<p>Married\ncouples who file a joint tax return owe no tax on their benefits if that\nso-called combined income falls below $32,000. If it lands between $32,000 and\n$44,000, up to 50 percent of benefits could be taxed, and incomes above $44,000\nface up to 85 percent taxation on benefits.<\/p>\n\n\n\n<p>For\nsingle filers, the combined-income taxation threshold is $25,000. The 50\npercent tax on benefits hits combined incomes from $25,000 to $34,000, and 85\npercent for amounts above that.<\/p>\n\n\n\n<p>Forpeople tapping their Roth IRA \u2014 whose withdrawals generally aretax-free in retirement \u2014 a tax return might not be needed.<\/p>\n\n\n\n<p>For\nillustration, say a married couple has two sources of income: Social Security\n($30,000 annually) and a Roth IRA ($30,000 each year). Because the Roth\ndistributions are untaxed, and their Social Security benefits fall below the\n$32,000 threshold, all of that income would be tax-free.<\/p>\n\n\n\n<p>Even\nsome taxpayers with sources of taxable income, such as a traditional IRA or\n401(k) plan \u2014 and whose Social Security ends up getting partly taxed \u2014 can find\nthemselves without a filing requirement.<\/p>\n\n\n\n<p>Once\nyou subtract out the standard deduction, you sometimes don&#8217;t have any tax\nliability, because the standard deduction has nearly doubled for all taxpayers\nfor 2018 through 2025 \u2014 and taxpayers age 65 or older continue getting an extra\ndeduction \u2014 there&#8217;s a chance even more retirees won&#8217;t have to file than in the\npast.<\/p>\n\n\n\n<p>Keep\nin mind, however, that personal exemptions have been eliminated in 2018.<\/p>\n\n\n\n<p><strong>If you\nhave any questions, please post them directly on this blog!<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here&#8217;s why some retirees no longer have to file a tax return Retirees whose only source of income is Social Security generally will not owe any federal taxes and therefore don&#8217;t need to file a return with the IRS. Even some people with taxable sources of income end up owing nothing, due to how Social [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":6772,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[30,23,24],"tags":[],"class_list":["post-6771","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-grid-2-cols-side-left-gallery-pc","category-irs","category-us-tax-return-1040-1040nr"],"acf":[],"_links":{"self":[{"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/posts\/6771","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/comments?post=6771"}],"version-history":[{"count":0,"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/posts\/6771\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/media\/6772"}],"wp:attachment":[{"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/media?parent=6771"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/categories?post=6771"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/tags?post=6771"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}