“When can a person stop paying taxes? My Mom is 91 and has an income of $1,700 SS. $700 pension and takes the minimum from her IRA of $25,000. A tax volunteer we used last year said my Mom does not need to file her taxes unless she is trying to get a refund. What do you think?”
The IRS does permit taxpayers with very low income to avoid the necessity of filing an income tax return. The real question is whether this is a good idea.
If a taxpayer’s income is lower than their standard deduction they may very well qualify for a waiver for filing a return. However, identity theft is a much larger challenge than filing a tax return. Often identity thieves will target senior citizens for exactly this reason. The taxpayer is not likely to be filing a return so the thief files one in their place requesting a substantial (bogus) refund and trashing your mom’s financial life.
Your mom is best served if you or your tax preparer files a return for her.
Gene answers your neighbors financial questions on More than Money.
Send in your concerns: Gene@AskMtM.com