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Federal income tax liability during retirement?

Updated: 8/17/2019
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For tax year 2009 tax return that you will file in the year of 2010.

Generally a person who is self-employed must file a tax return if their net earnings from self employment for the year exceed $400, and pay social security and Medicare taxes and any income taxes that may be due.

If a dependent on some one else tax return and unearned income (pension, rent, interest, dividends, capital gains, etc.) over 950 must file a tax return.

For 2009 filing single and under 65 the gross income amount is at least 9350 must file a tax return. Excluding social security benefits.

For 2009

Single standard deduction amount is 5700

Exemption amount is 3650

Total tax free income for 2009 year is 9350 excluding social security benefits

For more detailed information on filing requirements go to www.irs.gov and use the search box for 1040 choose 1040 instruction and go to page 7 thru 9.

http://www.irs.gov/pub/irs-pdf/i1040.pdf

And of course you do not want to forget the state as they could have different filing requirements and possibly some benefits you could be entitled to if you were to file a tax return with them

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Related questions

Is federal retirement earned income?

Federal retirement distribution that a taxpayer receives during the year is NOT earned income for the year. The amounts are retirement benefits.


Will the 8000 be refunded or will just reduce your adjusted gross income?

The tax credit amount does not have any affect on your AGI nor on your taxable income amount. Your federal income tax liability if any will be reduced by up to the 8000 of your FTHBTC. If your federal income liability is less than the 8000 amount then you will receive a refund of the amount that is left. The 8000 FTHBTC is a refundable credit and if you do not have any federal income tax liability you will receive the 8000 amount as a refund.


Why is railroad retirement not taxed?

Railroad retirement benegits are subject to Federal Income tax. Tier 1 of Railroad retirement has the same treatment regarding income taxes as does Social Security benefits. Tier 2 of Railroad Retirement benefits are subject to Federal income tax just like other company pensions. Railroad Retirement Unemployment benefits receive the same tax requirements as do State unemployment benefits.


Is a pension earned income?

Retirement distribution amounts that a taxpayer receives during the year is NOT earned income for the year. The amounts are retirement benefits.


Do military retirees pay taxes on retirement income in WA?

If you are talking about state income taxes, Washington does not have a state income tax so there would be no state income tax on the retirement income for Washington residents. Generally, there would be Federal tax though.


What is the difference between a refundable and a nonrefundable credit?

On the federal 1040 income tax return a refundable credit means that if you do not owe any past due taxes, penalties, interest or legal government debt that is in the FMS offset refund program you will receive a refund of the amount of the refundable credit. The nonrefundable credit amounts if more than your federal income tax liability will only reduce your federal income tax liability to -0- ZERO on your 1040 federal income tax return and any amount of the nonrefundable over your income liability will NOT be refunded to you.


Percentage to pay in federal income tax?

You do not have a set percentage amount that each taxpayer would pay annually in taxes. The tax bracket percentage amounts change for each taxpayers amount of taxable income that they end up having to use to determine the correct amount of their federal income tax liability after the federal income tax return is completed correctly down to the line on the 1040 federal income tax return that says taxable income. Then you would know the amount of your federal income liability for the year and would be able to determine your percent that is being collected from you from your income for the tax year.


If you make 10000 dollars a year do you have to file income taxes?

Yes and you could have a federal income tax liability when you complete your income tax return correctly.


Do monthly retirement checks reduce social security checks?

No the retirement income is not a EARNED income. And the amount of your retirement income that you receive during the year would NOT be included in the earnings test amount that could reduce your SSB amount for the year.


What taxes do you pay on deferred income?

Deferred compensation income that is contributed to your retirement plan is subject to the social security and medicare taxes in the year that the amounts are contributed to your retirement plan. When you reach the retirement age and start receiving distributions from the retirement plan the taxable amount of the distributions will be added to all of your other gross income on your 1040 federal income tax return and be subject to the income tax at your marginal tax rates.


How much taxes are due on 4800.00 a year?

For the 2009 tax year if your taxable income is 4800 your federal income tax liability would be 483.


How much taxes does a 19 year old have to pay?

When your income tax return is completely correctly then you will know the amount of your federal income tax liability. This answer will only be known after you determine the amount of your gross income that will be taxable income to you on your income tax return. For an example if you are a qualifying dependent on another tax payer's income tax return and you have 951 of unearned income your federal income tax liability would be $1 in federal income taxes. Interest, dividends, capital gains, rental income, gambling winnings, etc. If you have 5700 of gross earned income wages, salaries, tips, etc. from an employer added to the 951 of unearned income on your 1040 income tax return then your federal income tax liability amount on your 1040 income tax return would be $96. If you are a self employed taxpayer and have a net profit of 500 from your schedule C-EZ and schedule SE added to the above amounts then your federal tax liability would be income tax $141 plus yourself employment tax of $70 for a total amount owed of $211 when your 1040 income tax return is completed correctly