If your on social security and you draw a pension do you have to?

Question

include that in your income to pay taxes on it.
If your only income is social security and this pension. No outside income neither one works. But they are worried that they have to pay taxes on this 400. a month pension.
since you paid taxes on it when you earned that money to put into your pension plan. He is over 65 she is 62

Answer 1

1. Social Security is not taxed if their total income is less than $32,000 per year.

2. At their ages, they can earn up to $17,900 in taxable pensions, wages, or interest income and not have to pay tax. This amount includes the standard deduction for married filing jointly of $10,300 plus an extra $1,000 becasue he is over 65, plus two personal exemptions at $3,300 each.

So if their only income is from Social Security and a $400/month pension, they won't have to pay tax and don't even have to file a tax return. They may want to file a state tax return if there are some credits they are eligible for, such as payments to low-income people or property tax rebates for senior citizens.

Answer 2

With their only income being social security and $400 a month pension, they don't have to file and don't owe any income tax. This year they should file form 1040EZ-T though, to get the $40 telephone excise tax rebate.