U.S. income tax

[Blue bruce]

Does any one know what the maximum money you can declare on federal income tax without paying any taxes

[Fookhaht]

From what source?  If from a foreign source, there is an $100,800 foreign income exemption as of 2015.  

[Jingthing]

It will depend on your filing status. Also if you're under a certain amount you aren't even required to file a return. These figures change annually. 

[gk10002000]

Varies a bit if married, single, etc.   Even if you have foreign income which may be all excludable, you still are required to file a 1040 then you properly account for it.  Below is the chart from the latest 1040 instruction

 

　

　

IF your filing status is . . .	AND at the end of 2015you were* . . .	THEN file a return if your grossincome** was at least . . .
Single(see the instructions for line 1)	under 6565 or older	$10,30011,850
Married filing jointly***(see the instructions for line 2)	under 65 (both spouses)65 or older (one spouse)65 or older (both spouses)	$20,60021,85023,100
Married filing separately (see the instructions for line 3)	any age	$4,000
Head of household (see the instructions for line 4)	under 6565 or older	$13,25014,800
Qualifying widow(er) with dependent child (see the instructions for line 5)	under 6565 or older	$16,600 17,850
*If you were born on January 1, 1951, you are considered to be age 65 at the end of 2015. (If your spouse died in 2015 or if you are preparing a return for someone who died in 2015, see Pub. 501.)
**Gross income means all income you received in the form of money, goods, property, and services that isn't exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). Do not include any social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time in 2015 or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). If (a) or (b) applies, see the instructions for lines 20a and 20b to figure the taxable part of social security benefits you must include in gross income. Gross income includes gains, but not losses, reported on Form 8949 or Schedule D. Gross income from a business means, for example, the amount on Schedule C, line 7, or Schedule F, line 9. But, in figuring gross income, do not reduce your income by any losses, including any loss on Schedule C, line 7, or Schedule F, line 9.
***If you didn't live with your spouse at the end of 2015 (or on the date your spouse died) and your gross income was at least $4,000, you must file a return regardless of your age.

[Blue bruce]

17 hours ago, Fookhaht said:

From what source?  If from a foreign source, there is an $100,800 foreign income exemption as of 2015.  

The source is S.S and annunities. Single Filing with no deductions. 

 

[Fookhaht]

I've been researching the same, as my situation is near to yours.  I've got S.S. income + private pension, and filing as a single taxpayer with no deductions.  I do have a Thai income, but it falls under the foreign income exclusion, which means it does not currently affect my taxes.  

It's complicated with S.S.   The amount of S.S. taxed depends upon the total of non-S.S. income.  I would have to know the separate amounts (S.S. income, annuity income) to give a definite answer. Couldn't be easy, could it?  

Here is a chart which might help:

SS Taxable Rates vs. Non-SS Income

 

For a typical scenario: 

Source:  www.bogleheads.org, "Taxation of Social Security Benefits"

SS Taxable Rates vs Non SS Income

Edited October 18, 2016 by Fookhaht

[Blue bruce]

 My Social Security  benefits total

$ 24,934.00. Other benefits total $ 7090

Total income is $ 32,024 what do you think my tax liability is on this income.

I am single and have no  deductions .

[Fookhaht]

Here's what I THINK (Caveat:  I'm not a financial professional--just a layman):

Your situation is pretty close to the scenario depicted in my last post.   Your S.S. income is only $4,934 above the scenario.  At the same time, your non S.S. income is only about half of the 15,000 threshold.

 

Let's give a liberal estimate (on the high side):

 

 32,024  - Total Income

-20,000 -  Less the S.S. non-taxed income suggested in the above scenario

 -6,300 -   Less your Standard deduction (2015) (comes off the adjusted gross income)

 -4,000 -   Less the personal exemption (2015)

__________

1,724 -    Taxed at 10% = $172

The $4,934 S.S. income (over $20K in the above scenario) could be taxed at 50-cents on the dollar, but I don't think so, because your non-S.S. income is so low, under the example $15K threshold.  Unfortunately, this is the part where I'm not so sure.

But may I make a more solid suggestion?  
Open up a free account with TaxAct.com.  Open a 2015 tax return, and run your numbers.  Use the easy 1040A form which still includes Social Security and annuities. Although the 2016 tax rates may be slightly different, I think this is as close as you'll get for a good estimate.   This is what I did, and it gave me a great basis on which to make estimated quarterly tax payments for this year.  

I know we have TV members with much more expertise than I, and I wish they'd chime in--some are retired U.S.A. accountants.  My above numbers could be totally off, but that's my best shot.

Good luck,
Fookhaht 

Edited October 18, 2016 by Fookhaht

[Blue bruce]

Thanks Fookhat, that's a lot of good info.  I got an extension on my 2015 tax return. I am going to America in November for 6 weeks   I guess I can pay it then.

[Jingthing]

3 hours ago, Blue bruce said:

Thanks Fookhat, that's a lot of good info.  I got an extension on my 2015 tax return. I am going to America in November for 6 weeks   I guess I can pay it then.

Then the filing deadline for you is October 18, 2016 (2015 return with extension) and you're way past the time any taxes owed were due.

Edited October 18, 2016 by Jingthing

[Thailaw]

And the extension is an extension to file your 2015 Federal tax return, not an extension to pay any tax due. You should have paid the estimated taxes due along with your application for a filing extension. If tax is, in fact, due and was not paid in full before 15th April 2015, you will owe interest and penalty on the unpaid amount.

[Jingthing]

Yes, that's a common misunderstanding. Extensions are about filing, not paying any tax owed.

[ubonjoe]

Lots of info can be found on the IRS site.

For example do you need to file a tax return. https://www.irs.gov/uac/do-i-need-to-file-a-tax-return

[Blue bruce]

Here is another question on IRS deductions. I received a 1099 from my annuity showing 55,000 dollars. Of this

50,000 was given to my x wife directory by annuity.  Do I show the 55,000 as income or the 5,000 as income? ?.? 

Thanks for your replies

[gk10002000]

11 hours ago, Blue bruce said:

Here is another question on IRS deductions. I received a 1099 from my annuity showing 55,000 dollars. Of this

50,000 was given to my x wife directory by annuity.  Do I show the 55,000 as income or the 5,000 as income? ?.? 

Thanks for your replies

  A bit outside my experience but since in general Alimony is deductible, I think If the 50,000 went to the wife as "alimony", then I am pretty sure you would have to file a Schedule C, itemized deductions and "deduct" the 50,000 there.  The 1099 details should say where you initially have to declare it for yourself. If it didn't go that way, then your wife would have gotten her own 1099 and would have gotten money directly.   Just my two cents

[gk10002000]

On 10/18/2016 at 9:28 AM, Jingthing said:

Yes, that's a common misunderstanding. Extensions are about filing, not paying any tax owed.

One year I worked in three states as a contractor, Alabama being one of them.  I always wait until the Fed return is closed out before I do the State returns, so that in the off chance the Feds had an issue and I had to refile I wouldn't have to also refile the state returns.  Fed return was submitted on time and refund received around May.  I got through two of the state returns.  Alabama was up next and they owed me about $35.  No hurry I thought to file it.  They owe me and I don't sweat 35.  I even looked at filing an extension but since the balance owed was to me, there was no way to complete the extension.  Fine.  So around August I got around to sending the Alabama return in.  To my surprise a few weeks later instead of a $35 refund I got a bill for $15!  <deleted>??  Finally getting in touch with them, what they did was fine me $50 for filing late!  I said now wait a minute, I did you guys a favor by not filing earlier and you got to keep the $35 you owed me longer!  You can't then fine me!  We compromised and they said, OK, the tax liability is $0.