Question for the Money Doctors
Question submitted on May 8, 2012.
QuestionI am 67 years old and recive(net) $700 per mo. from state retirement and (net) $1300 per mo from SS. I had implemented my income as a contractual RN and last year had an annual income of $35,000. I was able to pay all my expenses and climed my home interest on my taxes. This year, I had to stop working due to spinal fusion back surgery and will need a knee replacement as well as possible ankle surgery when my back heals. I get no sick pay, and have had to file for bankruptcy (the market is too depressed to sell my house) Luckily, I was able to move in with my sister, but I am worried about this years taxes. All my deductions plus extra, were from my paycheck. I do not have taxes taken from my SS or retirement and can no longer use the house as a deduction. What can I expect when 2012 tax time comes and what should I do?
Based on what you''ve written, it seems that your only income this year other than social security is $8,400 from your retirement income. Your social security income will not be subject to tax at this level of income. After your deductions for personal exemptions and the standard deduction, your taxable income should be zero, and you will have no tax.
If the above assumption is not correct and you do have other income, you should consult your tax advisor, or call 1-888-227-7669 to find an IRS sponsored TCE (Tax Counseling for the Elderly) program, or 1-800-906-9687 to find a VITA (Volunteer Income Tax Assistance) program near you.
For additional information visit http://www.360financialliteracy.org/