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Do you pay income tax on earned income after age 70 and one half?
Wiki User
∙ 10y ago
Yes, individuals are still required to pay income tax on earned income after they turn 70 and a half, just like any other age. However, they may also be subject to required minimum distributions from retirement accounts, which can impact their taxable income. It's recommended to consult with a tax professional for specific advice based on individual circumstances.
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Does one pay fica taxes over 70 years of age?
No, individuals over the age of 70 are generally exempt from paying Social Security or Medicare taxes (FICA taxes) on any earned income. There is no age limit for paying income taxes on investment income, though.
How old do you have to be to have a self directed Roth ira?
To have a self-directed Roth IRA, you typically need to be at least 18 years old. However, you must have earned income in order to contribute to a Roth IRA, so you also need to have a source of income to be eligible.
When seventy years old do you still pay Taxes years old?
Yes, individuals are typically required to pay taxes at age 70 if they have income that is subject to taxation, such as from retirement savings, investments, or Social Security benefits. Age does not exempt someone from their tax obligations.
Does demographic mean age?
No, demographic refers to characteristics such as age, gender, income, education level, and location that are used to classify and study a population. Age is just one aspect of demographics.
Can you close an IRA after age 70 and one half?
Yes, you can close an IRA after age 70 and a half. Once you reach this age, you can start taking distributions from your IRA without penalty. Keep in mind that you will need to pay taxes on any withdrawals you make, as contributions to traditional IRAs are typically tax-deductible.
what if you report half of your 1099 int and the other half next year so you can qualify for your earned income credit?
You cannot do this and it will cause you to be audited by the Internal Revenue Service and pay penalties, interest, and tax due to your error. You must file income earned in the year that it was earned in and cannot decide to put part of it in one year and part in another year.
Where can one find an earned income credit table?
The IRS government site has an earned income tax credit table. Also, Turbo Tax has a good earned income credit table. Turbo Tax will ask questions that will help one determine if they qualify for a credit. Then, one can use their income credit table to see how much credit they can claim.
Do you have to pay income tax on money earned while working after age 72?
Sure and you already know that you will have to do this. Age is NOT one of the requirements of when a person MUST FILE A INCOME TAX RETURN. When you have the amount of taxable income for your filing status to meet the MUST FILE A INCOME TAX RETURN you can be any age as long as you are still breathing you will be required to file your 1040 income tax return correctly and pay the amount of income TAX that may be due on all of your gross taxable worldwide income.
What is the difference between direct income and indirect income?
1. Direct income is one which is earned directly by way of business activities. 2. Indirect income is one which is earned by way of non- business activities. For example, sale of old newspapers, sale of carton boxes, etc.
What is one advantage of investing stocks?
Investing in stocks is one way of earning money or earned income.
Can Social Security Disability be garnished for child support after child reaches age eighteen?
No, Social Security Disability can not be garnished for anything. That is not considered earned income. So no one can garnish it. sorry
Is there an alternative to income averaging in order to re-distribute income from one year to another?
Except for special situations, like Farm income, income averaging isn't available anymore. The most you can do is try to manage the year the income is considered earned in.
Can you get taxed twice for income earned in one state if you move to a different state?
No. You may have to file 2 state income tax returns one resident state and one part year resident for this purpose.
What is the maximum income one can earn and still keep medicare?
For 2009 and 2010 ALL of your qualified gross earned income will be subject to the medicare insurance tax amount.
How much do you have to make to file a federal tax return?
Generally, Single under age 65 must file when your gross income is at least $8,950 for 2008 ($9,350 for 2009). Married Filing Jointly under age 65 must file when your gross income is at least $17,900 ($18,700 for 2009). Married Filing Separately must file when your gross income is at least $3,500 ($3,650 for 2009). Head of Household under age 65 files when your income is at least $11,500 ($12,000 for 2009). Qualifying widow(er) under age 65 with dependent child files when your income is at least $14,400 ($15,050 for 2009). Dependents under age 65 must file if your earned income is over $5,450 for 2008 ($5,700 for 2009). Even if you're not required to file, you should file under certain circumstances. One, you're filing for a refund of withheld income tax because you owe no tax. Two, you're eligible for certain credits (earned income, making work pay, additional child tax credit, etc.).
How does one get earned income credit?
Earned income tax credit, or EITC, can be received if certain qualifications are met. Self employed workers and farmers earning less than $50,270 are generally eligible. Reward credits limits are based on the amount of children.
Difference between gross income and income?
Income is a general term referring to one's financial gain, whether earned or unearned, received as wages, or for services, from the sale of goods or property, or as earnings on investments over a given period of time. Gross income is the total income earned from all sources (e.g. wages, property) in a given period before expenses or taxes are deducted. Net income is the income or profit remaining after taxes and expenses have been deducted.
