We haven't even started our taxes yet, but we usually are pretty close to breaking even. Don't expect any big refund.
We always get a $1200 Federal refund and a $237 State refund, because we don't declare any wages or salaries. We don't itemize either. The Govt. always withholds too much from our Retirement and Pension benefits, so they kick it back! We have our tax returns prepared by IRS employees, at no cost to us. In the meadow we will build a snowman... Hal & Judy
I never set things up where I would get a refund. Better in my bank getting interest, as little as it is these days.
There is a new tax form exclusively for seniors, the 1040-SR alongside the original 1040. The instructions cover both. From what I've googled, both will yield the same result, so why have they bothered?
We have that, too, each one also delivering the same results but one is a bulky document and, thus, time-consuming to fill out for those who have more assets. The other one is just two sheets for those who haven't. Time and money make the difference, not the results. In your case, the new form is said to be simplified and without the limitations restriciting the use of Form 1040-EZ "Individuals could only use Form 1040-EZ if their filing status was single or married filing jointly and they did not claim any dependents. Also, the following taxpayers could not use Form 1040-EZ: those over age 65; individuals or married couples with more than $100,000 of income, or income from sources other than wages, salaries, tips, taxable scholarship or fellowship grants, unemployment compensation, or Alaska Permanent Fund dividends; taxpayers with more than $1500 of interest income."
When seniors must file For tax year 2019, you will need to file a return if you are unmarried and at least 65 years of age, and your gross income is $13,850 or more. However, if you live on Social Security benefits, you don't include this in gross income. If this is the only income you receive, then your gross income equals zero, and you don't have to file a federal income tax return. But if you do earn other income that is not tax-exempt, then each year you must determine whether the total exceeds $13,850. For tax years prior to the 2018 tax year (filed in 2019), these amounts are based on the year's standard deduction plus the exemption amount for your age and filing status. Beginning in 2018, only your standard deduction is used since exemptions are no longer part of calculating your taxable income under the new tax law passed in late 2017. If you are married and file a joint return with a spouse who is also 65 or older, you must file a return if your combined gross income is $27,000 or more. If your spouse is under 65 years old, then the threshold amount decreases to $25,700. Keep in mind that these income thresholds only apply to the 2019 tax year, and generally increase slightly each year. When to include Social Security in gross income There are certain situations when seniors must include their Social Security benefits in gross income. If you are married but file a separate tax return and live with your spouse at any time during the year, then 85% your Social Security benefits are considered gross income which may require you to file a tax return. In addition, a portion of your Social Security benefits are included in gross income, regardless of your filing status, in any year the sum of half your Social Security plus all other income, including tax-exempt interest, exceeds $25,000 or $32,000 if you are married filing jointly.
It's now been 8 years since I've filed a tax return. I thought I would owe taxes this year but I just got a call from my CPA this morning and she said no.