last seen 20 weeks 2 days agoboth my parents are divorced and receive pensions and social security...they are also legally separated and have been since i was a child...they haven't filed jointly in over twenty-five years....with my dad being sick, my mom took him in and now takes care of him, (my mom is a saint)....dad takes in about 20k annually (10 of that social security) and my mom takes home about 13k annually, these don't include assets, ...now here is the question...should they be paying taxes?...my dad insists that he shouldn't and has been giving me a really hard time about going to the IRS...he had some tax evasion issues about twenty years ago when i was a little girl but that has since been taken care of....i must also add that my dad is slowly succumbing to his dementia but he is in denial about it...my mom doesn't think she takes home enough money to file taxes and i also disagree...my siblings are up in arms because they think that if (God forbid) he passes away, we get stuck paying the taxes...i told them not to worry because my parents do have enough to take care of it if they owe anything, but they are still upset...i am too much of a chicken to call the IRS because I fear they might get into a world of trouble.
This might be a silly question.....
Posted on: Mon, 04/09/2007 - 2:11pm
I edited a post suggesting you take everything to a tax preparer. Well, while I was at the IRS website I noticed the FreeFile. Why don't you try it from home with the information. I used TaxAct for my daughter and loved it. As long as the AGI isn't over 52,000.00, it may work. If you go through the motions and they can't use FreeFile you can back on out of it. No harm done.
Hey, it's free. And this is the last word on this from me, unless something else comes up. Good luck!
Lynn
If I was standing on a fish, I'd slip and fall......
Lynn, you are an angel from heaven!!! this is exactly what i needed...thank you!!
To err is human, to forgive divine
I went to Topic 423. I highlighted some in red. It all gets right back to that worksheet. Here is an excerpt:
If the only income you received during the tax year was your social security or equivalent railroad retirement benefits, your benefits are probably not taxable and you probably will not have to file a tax return.
If you also received other income, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status. If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable. Your taxable benefits and modified adjusted gross income are figured in a worksheet in the Form 1040 Instructions or Form 1040A Instructions.
If I was standing on a fish, I'd slip and fall......
As a backup I went directly to the Social Security Administration website to their Questions and Answers about Social Security and Taxes and am quoting the information below. Go to their Questions and Answers page for a lot more information that may pertain to your parents. There is a lot of good information there.
Some people who get Social Security will have to pay taxes on their benefits. Less than one-third of our current beneficiaries pay taxes on their benefits.
You will have to pay federal taxes on your benefits if you file a federal tax return as an "individual" and your total income is more than $25,000. If you file a joint return, you will have to pay taxes if you and your spouse have a total income that is more than $32,000.
For more information, call the Internal Revenue Service (IRS) toll-free at 1-800-829-3676 and ask for IRS Publication Number 915, Social Security and Equivalent Railroad Retirement Benefits. People who are deaf or hard of hearing may call the IRS toll-free number, 1-800-829-4059.
This publication is also available on the IRS website at www.irs.gov/pub/irs-pdf/p915.pdf.
Many states and local authorities do not tax Social Security benefits. You should contact your state or local taxing authority for more information.
If I was standing on a fish, I'd slip and fall......
Below is a direct quote from the IRS website. If you go to Form 1040 Instructions, on page 28 is a worksheet.
EDITED to add: I think it is necessary to fill out the worksheet that is linked above (page 28) because even though the Social Security income may not be taxable they do have other income. I think it would be wise and best for the children (for ease of mind) to take all the necessary information to a tax preparer, because there are more variables here than just SS income. This way, you would know either way. I don't see a need to go to the IRS at this point. Professional advice is really the best way to go.
IRS TAX TIP 2007-30
How much, if any, of your social security benefits are taxable depends on your total income and marital status. Generally, if social security benefits were your only income, your benefits are not taxable and you probably do not need to file a federal income tax return
If you received income from other sources, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status. Your taxable benefits and modified adjusted gross income are figured in a worksheet in the Form 1040A or Form 1040 Instruction booklet.
Before you go to the instruction book, do the following quick computation to determine whether some of your benefits may be taxable:
The 2006 base amounts are:
For additional information on the taxability of social security benefits, see IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits. Publication 915 is available on the IRS Web site at IRS.gov or by calling 800-TAX-FORM (800-829-3676).
Links:
If I was standing on a fish, I'd slip and fall......
Not silly at all. Sorry for the delay, I was whisked away to help a friend yesterday and was unable to get back to GuG.
I need a moment, because I want to give you some direct quotes and links from the IRS, that you will need to print so you can present them to your parents.
And thank you again, Smartmom for alerting me to the question. I so miss my notices!
Be back.
Lynn
If I was standing on a fish, I'd slip and fall......
Thanxs Lynn, i'll be waiting!!!!
To err is human, to forgive divine
I think as long as your collecting a income you have to file a tax return - you just might not have to pay. This is one for LynnH
Did you go on the IRS's web site click here to see what I found on their web site as far as social security income
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Life is to short for drama and petty things...