At what point do you pay IRS if you are over 70 1/2?

Answer 1

The only magic in taxes about 70 1/2 is that you have to take distributions from your retirement plans.

If you have no self-employment income, and are single, then, for 2006:

The standard deduction is $5,150, the additional deduction for being elderly (ie, over 65 ) is $1,250, and the personal exemption amount is $3,300. Add all this together, and it totals $9,700.

If you are married and your spouse is also over 65, the total of these amounts is $10,300, $2,000, and $6,600, for a total of $18,900.

If you made more than $9,700 (or combined $18,900 with your spouse if you are married and both over 65) BEFORE your deductions, you need to file a tax return. Less than these amounts, you don't need to file.

(The above assumes that you are not claimed as a dependent by another taxpayer.)

You also need to file if you made more than $400 self-employment income, regardless of what your other income is.

Answer 2

You are required to file a return if your income, not counting social security, is over $9700 if you are single, $17,900 if you're married filing a joint return and your spouse is under 65, and $18,900 if married filing joint and spouse is at least 65.

Whether or not you owe any taxes will depend on how much income you have.

If you want to have your taxes done at no charge, look for a TCE site near your home. Find more info at http://www.irs.gov/individuals/article/0,,id=107626,00.html and http://www.aarp.org/money/taxaide/

Answer 3

Best suggestion.....

Call HR Block or Jackson Hewitt, and ask one of their preparers they see so much of it they can give you a rough estimate much more accurately.