PAGE 38 MONTANA SENIOR NEWS
FEBRUARY/MARCH 2010
Tax Help – Where To Find It By Jim Miller Q: What are the 2009 IRA minimum filing requirements? My income was very low last year and I am thinking I may not have to file tax returns this year. What can you tell me? A: There are millions of people in your situation. In fact, according to the Tax Policy Center, around 55 percent of Americans over age 65 will not have to file income tax returns this year mainly because their incomes are under the IRS filing requirements. Here is what you should know. 2009 Filing Requirements - If your “gross income” is below the 2009 IRS filing limits, you do not have to file a federal tax return this year. Gross income includes all the income you receive that is not exempt from tax, not including Social Security benefits, unless you are married and filing separately. Here is an income breakdown for each filing status. • Single: If your 2009 gross income was less than $9,350 ($10,750 if you are 65 or older), you do not have to file. • Married filing jointly: You do not need to file if your gross income was under $18,700. If you or your spouse is 65 or older the limit increases to $19,800. And if you are both over 65, your income must be under $20,900 not to file. • Head of household: If your gross income was below $12,000 ($13,400 if age 65 or older), you do not have to file. • Married filing separately: At any age, you must file if your income was at least $3,650. • Qualifying widow(er) with a dependent child: If your gross income was less than $15,500 ($16,150 if age 65 or older), you do not need to file. Note: Just because you are not required to file a federal tax return does not necessarily mean you are also excused from filing state income taxes. Check on that with your state tax agency before concluding you are entirely in the clear. For links to state and local tax agencies see www.taxadmin.org – click on “Links.” Senior Tax Credit - If you find that your gross income is more than the IRS filing limits, you will
need to file a federal tax return. But depending on your income level, you may be eligible for an elderly tax credit, which can amount to as much as $750 for a single taxpayer and up to $1,125 for a couple. To qualify, you must be 65 or older (or under 65 and disabled), a U.S. citizen, and your adjusted gross income must be less than $17,500 for a single filer, and the non-taxable part of your Social Security or other nontaxable pensions, annuities or disability income must be less than $5,000. Or, if you are married and are filing jointly and you both qualify, your income will need to be less than $25,000, and your nontaxable Social Security or other nontaxable pensions must be under $7,500. To claim the credit you will need to file either Schedule R, if you are filing Form 1040, or Schedule 3, if you are filing Form 1040A. To learn more, see IRS publication 524 “Credit for the Elderly or Disabled” at www.irs. gov/pub/irs-pdf/p524.pdf, or call 800-829-3676 and have them mail you a copy. Tax Prep Help - If you do need to file a tax return, you can get help through the IRS sponsored Tax Counseling for the Elderly (TCE). This program provides free tax preparation and counseling to middle- and low-income taxpayers, age 60 and older. Call 800-906-9887 to locate a service near you. Also check with AARP, a participant in the TCE program that provides free tax preparation at more than 7,000 sites nationwide. To locate an AARP Tax-Aide site call 888-2277669 or visit www.aarp.org/money/taxaide. Savvy Tips: If you have tax questions, the IRS offers a helpline at 800-829-1040, or visit a nearby IRS Taxpayer Assistance Center (see www.irs.gov/localcontacts) where you can get face-to-face help free. Also see www.irs.gov/ individuals/retirees for a variety of tax tips for seniors. Send your senior questions to Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit SavvySenior.org. Jim Miller is a contributor to the NBC Today show and author of “The Savvy Senior” book. MSN
Gifts From The Heart Are Lasting Gifts Since February is “heart month,” this is a good time to reflect on whether your favorite nonprofit(s) might be in need of your gift from the heart. In today’s very difficult economic times, many nonprofits are understandably anxious about their future. Will they be able to continue to do all the wonderful things many of us have come to expect? Certainly nobody wants any of them to not be able to continue. Legacy Montana,
Need answers at tax time? The Montana Department of Revenue can help you. Ÿ Need help deciding which tax form to use? Ÿ Wonder if you qualify for the Elderly Homeowner/ Renter Credit worth up to $1,000? Call us toll-free at 1-866-859-2254. In Helena, call (406) 444-6900.
a group of 50 nonprofits in Missoula and the surrounding area, works to make people aware that they can leave something for their favorite nonprofit(s) in a will or trust. With proper planning you can remember your family, friends, and the nonprofit organizations closest to your heart. During “heart month,” have a heart, and take steps to help ensure that your favorite nonprofit(s) will be sustainable in the future. For more information about participating charities, please visit our website: www.legacymontana.org or call us at 406-543-5387. MSN