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Simple Tax Question
Old 12-24-2019, 04:15 PM   #1
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Simple Tax Question

Age over 80... Filing jointly. Income from Social Security, and Taxable annuity pay out of $10,000. That's it.

Taxes?
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Old 12-24-2019, 04:40 PM   #2
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Iím not sure if youíre annuity is the same as mine, but mine would not be taxable to 10,000 on a 10,000 payout. My taxable amount is roughly half of the payout.

Sorry - I wonít try to answer your overall tax question- Others will chime in who are far more qualified
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Old 12-24-2019, 06:53 PM   #3
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I'd file even though there is no tax liability just for a matter of record.
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Old 12-24-2019, 07:03 PM   #4
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I'd file even though there is no tax liability just for a matter of record.
Not a bad idea. You will receive a 1099 for the 10K. The IRS computer will look for your return
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Old 12-24-2019, 07:04 PM   #5
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I'd file even though there is no tax liability just for a matter of record.
I would not. If my analysis was that I did not owe any taxes and I did not pay any in, then I would not file. If you look at the IRS rules, it has a section "Who Must File". If I'm not one of those who must, then I'm not going to.

imoldernu,
I don't see how you could have any tax but please don't take our word for it. Is there any reason to believe that annuity is taxable outside of ordinary income? I can't think of one, but just be sure.

EDIT to add:
Just looked it up. The limit for filing is $26,600 but that's gross income. SS is not included. You should be fine. I assume you did not pay in any taxes.
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Old 12-25-2019, 07:46 AM   #6
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Two reasons why I would file, as a previous poster pointed out the IRS will also get a 1099 and in the past there have been federal rebate checks (I think during the Bush years) and in order to qualify you had to have a filed return for the previous year.
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Old 12-25-2019, 09:18 AM   #7
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I do taxes for low income/elderly and most come in to make sure their SS number continues to register through tax returns. Kind of an identity theft protections to make sure others haven't tried to file under their SS number.
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Old 12-25-2019, 10:17 AM   #8
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Age over 80... Filing jointly. Income from Social Security, and Taxable annuity pay out of $10,000. That's it.

Taxes?
No need to file. What I did when my grandmother was in a similar position and no longer needed to file was a short memo on why she no longer needed to file and put it with her tax papers in case the IRS ever asked. That's all you need to do.
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Old 12-25-2019, 12:37 PM   #9
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About filing...
I think the state and federal government have forgotten about us. We haven't even filed for more than 15years, and paid no taxes since I closed my business in 1989.

The reason I asked was because I didn't remember much about tax forms. Going to the Government website to understand, I would have needed a lawyer.

Am guessing we're leaving some monies on the table for other assets we could be cashing in, but if and when either of us should need long term care, much of the cost would be tax exempt.

If I had been smarter about money, I probably would be helping pay the nation's debt now.
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Old 12-26-2019, 12:10 AM   #10
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No need to worry, IL doesn't have any refundable tax credits except the EIC (for which you need a lousy job).

So OP you are not missing out on any refund money from State tax returns.
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Old 12-26-2019, 06:58 AM   #11
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Originally Posted by imoldernu View Post
About filing...
I think the state and federal government have forgotten about us. We haven't even filed for more than 15years, and paid no taxes since I closed my business in 1989.

The reason I asked was because I didn't remember much about tax forms. Going to the Government website to understand, I would have needed a lawyer. (
Since you haven't filed for 15 years, it seems unlikely anything is amiss. The SSA and 1099-R keep you below the limit for which you owe taxes.

However, I believe you would benefit by having a trusted individual you can go to with such questions. Is one or more of your children able to perform this duty?
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Old 12-26-2019, 07:43 AM   #12
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I do taxes for low income/elderly and most come in to make sure their SS number continues to register through tax returns. Kind of an identity theft protections to make sure others haven't tried to file under their SS number.
+! I do taxes for AARP and always recommend a free return just to make sure no one else can file on your SS#. Helps eliminate fraud and gives tax return numbers needed in my state for a property tax relief law.
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Old 12-26-2019, 07:43 AM   #13
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No need to worry, IL doesn't have any refundable tax credits except the EIC (for which you need a lousy job).

So OP you are not missing out on any refund money from State tax returns.
Might be missing out on a property tax deduction due to low income.
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Old 12-26-2019, 08:10 AM   #14
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Might be missing out on a property tax deduction due to low income.
We've had local tax freeze and homestead exemption, since 2004. I figure about $75,000 in total.
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Old 12-26-2019, 08:25 AM   #15
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We've had local tax freeze and homestead exemption, since 2004. I figure about $75,000 in total.
Our 65+ exemption requires a tax return every year to prove income below 65,000
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Old 12-26-2019, 10:11 AM   #16
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+! I do taxes for AARP and always recommend a free return just to make sure no one else can file on your SS#. Helps eliminate fraud and gives tax return numbers needed in my state for a property tax relief law.
THIS. As a former victim of a fraudulent tax return filed in my name, it is *not* worth the hassle. I spent months trying to clear it up, and eventually had to get a taxpayer advocate to shepherd it all the way through. Finally cleared up and I can now file my own taxes but I do have to use a special PIN # each year.

I was not impacted financially, but the hassle and headache are fresh in my mind. I now file as soon as possible each year.
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