ACA Open Enrollment Ends Dec. 15. Review Your Options Before Being Locked in for 2018. Read More

Reply
Highlighted
Social Butterfly

Re: Should my mother file a tax return?

1,640 Views
Message 1 of 10

Excellent point . . . would not have thought of that myself. I won't have that issue because I will always have income coming in outside of SS.  But my mother who is 97 and is now on Medicaid hasn't filed a return since the 1960's.  Risk?

Report Inappropriate Content
Info Seeker

Re: Should my mother file a tax return?

1,736 Views
Message 2 of 10

I am an AARP TaxAide in Minnesota. The procedure in our MN district is to ALWAYS file a Federal return for the person even if the there is no taxable income.  The reason is Identity Theft Prevention – file the return so that someone cannot file a fraudulent return using that SSN.  If the AGI is zero, we add in $1 on line 21 of the 1040, with the description “ID Theft Prevention”

Report Inappropriate Content
Info Seeker

Re: Should my mother file a tax return?

2,008 Views
Message 3 of 10

Yes, though necessarily  taxable it is a reportable event. Also State might have a tax on it.

Report Inappropriate Content
Social Butterfly

Re: Should my mother file a tax return?

2,072 Views
Message 4 of 10

I believe there are a couple things here that must be considered.  Some states tax Social Security; you would have to check the limits as established by the State.  In NY, SS is not taxed.  If you've had taxes taken out of salary or your 401K etc. (my investment firms have required tax withdrawals of 10% and 20% depending on size of RMD or other type of withdrawal) and want it back, then yes, you need to file a return.  Also with regard to Federal, it depends on your gross income and this includes money that comes from IRAs and 401Ks that were tax deferred. 

 

IF your filing status is . . .

AND at the end of 2016

you were* . . .

THEN file a return if your gross

income** was at least . . .

Single(see the instructions for line 1)

under 65

65 or older

$10,350

11,900

Married filing jointly***(see the instructions for line 2)

under 65 (both spouses)

65 or older (one spouse)

65 or older (both spouses)

$20,700

21,950

23,200

Married filing separately (see the instructions for line 3)

any age

$4,050

Head of household (see the instructions for line 4)

under 65

65 or older

$13,350

14,900

Qualifying widow(er) with dependent child (see the instructions for line 5)

under 65

65 or older

$16,650

17,900

 

As far as income from sale of a home, one can be exempt up to $250,000 ($500,000 in some cases), but if one has already received exemption from the sale of a previous home, they are not eligible for another.

Report Inappropriate Content
Bronze Conversationalist

Re: Should my mother file a tax return?

2,122 Views
Message 5 of 10

Depending on your state, check on the requirements to file state returns, too.  Some things that may be excludable from federal returns in not always excluded on state returns.

Report Inappropriate Content
Info Seeker

Re: Should my mother file a tax return?

2,401 Views
Message 6 of 10

My AARP tax preparer at the Senior Center in Alabama told my husband and me that we did not have to file returns for 2017 and beyond.  Hope he is right.

Report Inappropriate Content
Info Seeker

Re: Should my mother file a tax return?

3,977 Views
Message 7 of 10

My lady friend survives only on social security and one of the free tax preparers told her not to bother however to qualify for some of the available benefits she qualifies for proof of income is a requirement and tax form information can be helpful

Report Inappropriate Content
Trusted Social Butterfly

Re: Should my mother file a tax return?

4,568 Views
Message 8 of 10

I'm seconding Gails complete answer. Actually, I asked DW who is an AARP Tax Aide and she concurs you must go through the motions and file.

   Consider looking for an AARP Tax Aide service, if available in your area, so you don't have to pay for the service.  


Just think. The world was built by the lowest bidder.
Report Inappropriate Content
Valued Social Butterfly

Re: Should my mother file a tax return?

4,580 Views
Message 9 of 10

Direct from the IRS -

IRS - Tax Topics - Topic 701 - Sale of Your Home

 

Note it says this:  " Reporting the Sale

If you receive an informational income-reporting document such as Form 1099-S (PDF), Proceeds From Real Estate Transactions, you must report the sale of the home even if the gain from the sale is excludable."

 

If she sold her home in the traditional manner, she will most likely to receive a 1099-S.

 

IRS Publication 523 can give you more info - 

 

 

Report Inappropriate Content
Info Seeker

Should my mother file a tax return?

4,587 Views
Message 10 of 10

Due to income, my mother has not had to file a federal tax return for 7 years.  Her home sold in 2016.  I realize the income from the sale is not taxable, but should I go throiugh the motions of filing a return anyway?

Report Inappropriate Content