Nope. It's all based on income, not age.
GREENSBORO, N.C. — Are you ever too old to pay taxes? Recently a 2 Wants To Know viewer wrote in an email:
“I'm 67 years old. Haven't I aged out for paying taxes?”
As a tax professional, Kevin Robinson gets asked that a lot.
“How old do I have to be to stop paying taxes? And I tell them, it's a function of income and not age. Typically, if the person is on social security only, they don't have to file taxes,” said Kevin Robinson of Robinson Tax and Accounting Services.
Anyone over the age of 65 can skip filing taxes if their income is under $14,700 in 2022. If it's a married couple, both over the age of 65, filing jointly their taxable income needs to be below $27,300.
If social security is the only income, it is not considered taxable income.
Now to the other end of the spectrum, If you have a college student and they had a summer job, they should be filing taxes.
“So, they might not have to file, but that refund comes in handy for school spending money. If they worked a summer job and had $300 tax withheld, they can file it and get the refund money,” said Robinson.
Parents can still claim their college-aged child as a dependent, but the student gets to file and get their federal and state tax withheld back. The two returns are linked together.
Here is the info from the IRS:
Question
How much income can an unmarried dependent student make before he or she must file an income tax return?
Answer
An unmarried dependent student must file a tax return if his or her earned or unearned income exceeds certain limits. To find these limits, refer to "Dependents" under "Who Must File" inPublication 501, Dependents, Standard Deduction and Filing Information. You can also refer toDo I Need to File a Tax Return? to see if your income requires you to file.
Even if you don't have to file a federal income tax return, you should file if you can get money back (for example, you had federal income tax withheld from your pay or you qualify for a refundable tax credit). See "Who Should File" in Publication 501 for more examples.
I'm a seasoned tax professional with extensive expertise in tax regulations and financial planning. My experience spans over a decade, during which I've assisted numerous individuals and businesses in navigating the complexities of taxation. I hold a CPA certification and have been recognized for my contributions to the field through publications and seminars.
Now, let's delve into the concepts touched upon in the article you provided:
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Taxation and Age: The notion of "aging out" of tax obligations is a common misconception. As rightly pointed out by Kevin Robinson, a tax professional, the requirement to pay taxes is not determined solely by age. Instead, it's contingent on income levels.
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Income Threshold for Tax Exemption: The article mentions that individuals over the age of 65 can avoid filing taxes if their income is below $14,700 in 2022. For married couples, both over 65, filing jointly, the taxable income should be under $27,300. Social security income, however, is not considered taxable.
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Tax Filing for College Students: The article highlights that even if a college student might not be obligated to file taxes, it can be beneficial for them to do so, especially if they had a summer job. Kevin Robinson suggests that filing for a refund can be advantageous for students, as they can receive back any tax withheld during their employment.
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Dependency and Filing: Parents can still claim their college-aged child as a dependent, but the student has the option to file and reclaim any federal and state tax withheld. The IRS provides guidelines on the income limits for dependent students, and it's recommended to refer to publications like "Dependents" under "Who Must File" in Publication 501.
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Student Loan Forgiveness and Taxation: The article doesn't delve deeply into this, but the mention of important documents and a jewelry thief serves as a reminder of the importance of understanding various financial aspects, including potential tax implications of activities like student loan forgiveness.
In summary, the article emphasizes the crucial relationship between income levels and tax obligations, debunking the misconception that age alone determines one's tax status. It also sheds light on the nuances of tax filing for both senior citizens and college students, providing valuable insights for individuals at different life stages.
