“When Can I Stop Paying Taxes?”

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“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?”

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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.

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Gene answers your neighbors financial questions on More than Money.

Send in your concerns: Gene@AskMtM.com

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