Do Seniors Have to File Federal Income Taxes?

Federal filing requirements for individuals aged 65 and over depend on a combination of your gross income, filing status, and the source of your income. The income thresholds that determine if you must file are higher for seniors than for younger taxpayers. Understanding these specific requirements is the first step in determining whether you need to file a federal income tax return.

Federal Income Tax Filing Thresholds for Seniors

The Internal Revenue Service (IRS) provides higher gross income thresholds for seniors, meaning you can earn more than a younger person before being required to file a return. These thresholds are a combination of the standard deduction plus an additional amount for age.

For the 2024 tax year, which you will file in 2025, a single individual aged 65 or older must file if their gross income is $16,550 or more. If you are married and filing a joint return, the threshold changes based on the age of each spouse. If only one spouse is 65 or older, the couple must file if their combined gross income is at least $30,750. If both spouses are 65 or older, that income threshold increases to $32,300.

For those who are married and file separately, the filing threshold is $5 of gross income, regardless of age.

Calculating Your Gross Income

To determine if you meet the filing thresholds, you must first calculate your gross income. The IRS defines gross income as all income you receive in the form of money, goods, property, and services that is not exempt from tax.

Common sources of income that must be included in your calculation are:

• Wages from any part-time work
• Interest earned from savings accounts or bonds
• Dividends from investments
• Distributions from pensions, annuities, and retirement accounts like a 401(k) or a traditional IRA
• Capital gains from the sale of assets, such as stocks or real estate

Some forms of income may not be fully counted or are treated under special rules. For instance, Social Security benefits have a unique calculation to determine if any portion is taxable, which will be addressed separately.

How Social Security Benefits Affect Filing Requirements

The taxability of Social Security benefits depends on a calculation of your “combined income.” The IRS formula is your Adjusted Gross Income (AGI), plus any nontaxable interest you received, plus one-half of the Social Security benefits you received for the year.

After calculating your combined income, you compare it to IRS base amounts to see if your benefits are taxable. For an individual, if combined income is between $25,000 and $34,000, up to 50% of Social Security benefits may be taxable. If income exceeds $34,000, up to 85% may be taxable.

For married couples filing jointly, the 50% range is for a combined income between $32,000 and $44,000. The 85% range applies to income above $44,000.

For example, a single person with an AGI of $22,000, nontaxable interest of $1,000, and Social Security of $15,000 has a combined income of $30,500. This amount falls in the 50% range, so a portion of their benefits is taxable. Only the taxable portion of your Social Security benefits is added to your other gross income when checking if you meet the federal filing threshold.

Reasons to File a Tax Return Even if Not Required

Even if your gross income is below the filing threshold, it may be beneficial to file a federal tax return. A primary reason is to receive a refund for federal income tax withheld from your paychecks or pension payments. If you worked part-time or received pension payments, the payer may have withheld taxes, and filing a return is the only way to get that money back if you do not owe any tax.

Filing a return is also necessary to claim certain refundable tax credits. These credits can provide you with a payment even if you have no tax liability. One such credit is the Credit for the Elderly or Disabled, which is available to certain low-income individuals who are age 65 or older or retired on permanent and total disability.