How much before filing taxes
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If someone else claims you as a dependent and you are over age 65, your status as married or single is relevant. Income counts as earned and unearned. Unearned income is from interest, dividends and Social Security or a pension. If you are single, you can have $2,350 in unearned income without filing federal income taxes on 2010 income. If you are over age 65 and blind, you can receive $3,750 annually in unearned income without filing a tax return. If you are married and over age 65 and someone claims you as a dependent, you can have unearned income of $2,050. Your unearned income can be $3,150 if you're over 65 and blind. The earned income limit for singles over 65 is $7,100 or $8,500 if you're both 65 and blind. Married dependents with earned income over $6,800 must file a federal tax return. That earned income figure is $7,900 if you are over 65 and blind and you are filing for 2010.
You can review your gross income to help decide if you need to file a federal income tax return. Your gross income is all income from all taxable sources. Social Security is taxable only if your combined income totals more than $25,000. The IRS adds half of your Social Security annual benefits plus nontaxable interest to your adjusted gross income to arrive at combined income. If you are 65 or over and single, gross income over $10,750 requires a federal tax return
for the year 2010. If you are married filing separately, you must file a tax return with gross income over $3,650 for the year. If you are married filing jointly and only one spouse is over age 65, gross income calculations over $19,800 require a tax return. If you are both over 65, $20,900 in gross income requires a tax return on 2010 income.
You must file a federal tax return if you earn $5 if you are married filing separately and your spouse itemizes deductions. If you operate a business, you must file a tax return if you have $400 in net income. If you are a church employee or have earned wages from a church-controlled organization, you must file a federal income tax return if your income exceeds $108.28. If you owe the IRS any special taxes or additional taxes on a retirement plan, health savings account or tuition plan, you must file a federal tax return on your 2010 income.
It is often to your advantage to file a federal income tax return. Seniors receive an extra exemption for age, and credits may apply. Some credits, like earned income, may refund more than you paid in taxes for the year. State income taxes are easy to file once you complete the federal form. Assistance is available with free software online. AARP sets up tax centers in 7,000 locations to assist seniors with free filing of federal taxes, and the AARP website answers tax questions for seniors.Source: ehow.com