Tag Archives: When Can I Stop Filing Taxes?

You never automatically stop filing taxes based solely on age—but you might no longer be required to file if your income drops below IRS thresholds. Here’s how it works in 2025:

✅ When You Can Stop Filing Taxes by Age & Income (2025)

You do NOT have to file a federal tax return if:

🔹 You meet all three of the following:

1. You are age 65 or older

2. Your income is below the IRS filing threshold

3. You don’t owe special taxes or penalties (e.g., self-employment tax, early IRA withdrawals)

🧾 2025 Federal Filing Thresholds (Standard Deduction Included)

💡 These include the additional standard deduction for seniors.

⚠️ Situations That Still Require Filing

Even if your income is below the threshold, you may still need to file if:

• You had self-employment income over $400

• You received advanced Premium Tax Credit for health insurance

• You took an early distribution from a retirement account

• You owe repayment of a credit or special tax (e.g., Social Security excess)

• You want to claim a refund or tax credit (like the Earned Income Credit)

📌 So Can You Stop Filing?

You can stop if all these are true:

• You’re over 65

• Your gross income is below the filing threshold

• You don’t have special tax situations

• You don’t want to claim a refund

Whether Social Security is taxed in retirement depends on your combined income — not just your Social Security. Many retirees are surprised to learn that up to 85% of their benefits can be taxable.

🧾 Key Rule: Provisional Income Formula

The IRS uses a special formula:

Provisional Income =
Your Adjusted Gross Income (AGI)

• Non-taxable interest (like municipal bonds)

• 50% of your Social Security benefits

💵 2025 Social Security Taxation Thresholds

🔢 Example Scenario:

You’re single and receive:

• $18,000 in Social Security

• $10,000 from a small pension

• $6,000 from a traditional IRA

Provisional Income =
$10,000 + $6,000 + ½($18,000) = $25,000
→ You’re just on the edge: up to 50% of your Social Security may be taxable.

🛡️ How to Reduce or Avoid Taxes on Social Security

1. Withdraw tax-deferred savings early (before taking Social Security).

2. Use Roth IRAs or Roth 401(k)s (qualified withdrawals don’t count toward the formula).

3. Spread out capital gains to avoid income spikes.

4. Consider Qualified Charitable Distributions (QCDs) if over 70½ — reduces taxable income.

📌 Summary

• Social Security is not always tax-free.

• If your combined income is below $25K (single) or $32K (married), you won’t pay tax on it.

• Up to 85% can be taxed if your income is higher.

• Smart withdrawal timing and income planning can help minimize or avoid taxes.

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Updated For Tax Year 2021

You can stop filing income taxes at age 65 if:

• You are a senior that is not married and make less than $14,250
• You are a senior that is married, and you are going to file jointly and make less than $26,450
• You are a qualifying widow, and earned less than $26,450

The IRS will want you to file a tax return when your gross income surpasses the total of the standard deduction for your filing status, in addition to one exemption amount. These filing rules will still apply to senior citizens who are living on their Social Security. However, if you are a senior, you don’t consider your Social Security income as gross income. If Social Security is your only source of income, then you won’t need to file a tax return.

When Seniors Must File Taxes

For the tax year 2021, you will need to file a tax return if you are not married, at least 65 years of age, and your gross income was $14,250 or higher. But, if you live on your Social Security benefits, you don’t include this in your gross income according to TurboTax. If this is solely the income you receive, then your gross income comes out to zero, and you won’t have to file a federal income tax return. But if you do earn additional income that is not exempt from being taxed, then each year you must figure out whether the total exceeds $14,250.

For previous tax years, these amounts are based on the year’s standard deduction, in addition to the exemption amount for your filing status and age. For tax years after 2018, only the standard deduction is used because exemptions are no longer used in calculating your taxable income under the new tax law passed in the latter part 2017.

When you and your spouse are 65 years of age or older and married and are going to file a joint return, you have to file a return if your joined gross income exceeds $27,800 or more. When your spouse is under 65 years old, the threshold amount diminishes to $26,450. Bear in mind that these income thresholds only apply to the 2018 tax year, and usually increase somewhat each year after.

When To Include Social Security In Your Gross Income

There are certain circumstances when seniors must add their Social Security benefits in their gross income. If you are married and file an individual tax return and reside with your spouse during the year, 85% of your Social Security benefits are deemed gross income which may warrant you to file a tax return. Additionally, an allotment of your Social Security benefits are included in gross income, no matter your status, in any year the total of half your Social Security including all other income, tax-exempt interest, exceeding $25,000 or $32,000 if you are married and filing jointly.

Tax Credits For Seniors

Even if you have to file a tax return, there are ways you can decrease the amount of tax you will pay on your taxable income. So long as you are a minimum of 65 years old and your income from sources other than your Social Security is not high, then a tax credit for seniors, the elderly or disabled, can lessen your tax bill on a dollar-for-dollar arrangement. Nevertheless, this tax credit is only useful when you truly owe tax to the IRS.

What Age Do You Stop Paying Taxes on Social Security?

You can stop paying taxes on Social Security at 65 years old as long as your income is not high. According to TurboTax, “As long as you are at least 65 years old and your income from sources other than Social Security is not high, then the tax credit for the elderly or disabled can reduce your tax bill on a dollar-for-dollar basis. However, this tax credit is only useful when you actually owe tax to the IRS.”

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