Question: Do I need to file a tax return after I retire?
Answer: You may need to file a return even after you retire. You’re required to file a return if your income is over certain levels. Generally, you must file a 2014 federal income tax return, even if you don’t owe tax, when your gross income exceeds the following limits:
Head of household
Married filing jointly
Married filing separately
If you are 65 or older or legally blind, you are allowed to make more money before you have to file a return. Single taxpayers who are legally blind can make another $1,550, plus an additional $1,550 if they’re over age 65. Married couples filing a joint return can add another $1,200 per spouse to their filing limit for each spouse who is over 65 or legally blind.
If your total income is less than these amounts, you’ll still have to file a return if you are self-employed and your business net income is $400 or more.
Even if you do not have to file a return, you might still want to do so. For example, if you paid taxes to the IRS or had taxes withheld from your wages or pension, the only way you can get your money back is to file a tax return.
Question: Does my child have to file a tax return?
Answer: If you or someone else claims your child as a dependent, your child will need to file a 2014 return if he or she has:
1) Earned income from wages of more than $6,200.
2) Earned net income from self-employment (from a paper route, for example) of $400 or more.
3) Investment income only (such as interest and dividends) of more than $1,000.
4) Both earned and investment income totaling more than the larger of: (a) $1,000 or (b) $350 plus earned income, not to exceed $6,200.
If no one claims your child as a dependent, your child has the same filing requirements as any other taxpayer.