There are some common misconceptions about retirement age and tax filing requirements. People sometimes erroneously state that since they are at full retirement age and collecting Social Security, tax return filing is no longer required. The truth is that whether a tax return is required depends on a retired person’s income and tax liability. The age of a retired person does not matter.  A person can be 120 years old and may still need to file a tax return.

Tax Filing Requirements

A person is required to file a tax return if they owe taxes or received a premium tax credit for Affordable Care Act marketplace health insurance. Filing by the April 15 tax deadline or filing for an extension is required to avoid a failure- to- file penalty.

A person who did not get a premium tax credit and is owed a tax refund does not have a tax filing requirement. That person has up to three years from the deadline to file and collect the refund.

Income Thresholds that Trigger Tax Liability

If a person’s sole source of income is Social Security, they do not owe any federal income tax and do not have a tax filing requirement. If a person has a small amount of Social Security subject to tax plus a modest amount of other income, the standard deduction may reduce their tax liability to zero.  As a retiree’s taxable income increases past the standard deduction, tax liability is likely.

2024 Standard Deduction Amounts

• Single: $14,600
• Married Filing Jointly: $29,200
• Head of Household $21,900

A person who is 65 or older adds an additional amount to the standard deduction:

• Single or Head of Household: add an additional $1,950
• Married Filing Jointly: add an additional $1,550 for each person on the return age 65 or older.

A single filer, age 65, would have a standard deduction amount of $16,550. A married couple, both over age 65 and filing jointly, would have a standard deduction of $32,300.

Explore Your Tax Situation

A person can find out if their Social Security benefits are taxable using this IRS online calculator: Are My Social Security or Railroad Retirement Tier I Benefits Taxable? Ta

A person can check to see if they have a tax filing requirement using this IRS online calculator: Do I Need to File a Tax Return?

Understanding tax filing requirements can help a retiree avoid penalties and plan ahead if a tax liability is expected.

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