When Retirees Have to File Taxes and When They Don't
Whether you must file depends on your income, not your age
You do not have to file a tax return just because you are retired. The IRS does not have an age threshold that triggers a filing requirement. Instead, whether you file depends on how much income you received last year — and the threshold is different depending on what kind of income it was and whether you are single or married.
The most common reason a retiree files is because their income exceeded the threshold. The second most common reason is that they want to — because they paid taxes throughout the year and a return gets them a refund. A third group files because they received certain types of income that require it, even if the total is small.
Key Takeaways
- You must file if your total income exceeds a threshold that depends on your age, filing status, and income type — for 2024, a single person age 65 or older with only Social Security and wages must file if they earned more than $15,600 in wages.
- Social Security income counts toward the threshold only if you have other income; if Social Security is your only income, you almost never have to file.
- You should file even if you are not required to if you paid taxes through withholding, because you may receive a refund.
- Self-employment income of $400 or more requires filing regardless of age or other income.
- The IRS thresholds change each year, so check the current year's limits before deciding whether to file.
Income thresholds for single filers age 65 and older
If you are single and age 65 or older, you must file if your gross income was more than a certain amount. For 2024, that threshold is $15,600 if your income comes from wages, self-employment, or a combination. The threshold is lower if your only income is from interest, dividends, or capital gains — in that case, you must file if you had more than $2,700 in unearned income.
Social Security income does not count toward this threshold unless you also have other income. If Social Security is your only income, you do not have to file no matter how much you received, with rare exceptions involving non-resident aliens or people with very high incomes who must file for other reasons.
If you have both Social Security and other income, the calculation is more complex. You add half of your Social Security to your other income, and if that total exceeds the threshold, you must file. For most retirees, this means you file if your wages or self-employment income plus half your Social Security exceeds $15,600.
Income thresholds for married filers
If you are married and filing jointly, both spouses must be age 65 or older for the higher threshold to apply. For 2024, if both are 65 or older, you must file if your combined gross income exceeds $27,700. If only one spouse is 65 or older, the threshold is $26,950.
If you are married and filing separately, each spouse has their own threshold. Generally, if either spouse has any income, both must file — the threshold for married filing separately is much lower, usually $5 or more of gross income. Most married couples file jointly to avoid this complication.
As with single filers, Social Security counts only if you have other income. Add half your combined Social Security to your other combined income; if that total exceeds the threshold, you must file.
When you must file even with low income
Self-employment income of $400 or more requires you to file, regardless of your age or total income. This includes income from freelance work, a small business, or gig work — even if you also receive Social Security. You must file to pay self-employment tax, which covers Social Security and Medicare contributions for self-employed people.
If you received income that had taxes withheld — such as a pension, an IRA distribution, or wages — you may want to file even if you are not required to. The IRS withholds based on a standard calculation, and your actual tax liability may be lower. Filing lets you claim a refund of the overpaid amount.
If you received certain types of income, such as distributions from an HSA (Health Savings Account) used for non-medical expenses, or if you owe alternative minimum tax, you must file regardless of the income threshold. These situations are uncommon for most retirees, but if you received an unusual form of income, check the IRS instructions for that form.
Why you might file even if you do not have to
Many retirees file because they had taxes withheld from pensions, Social Security, or IRA distributions during the year, and filing allows them to claim a refund. If you are not required to file but you paid taxes, you can still file to recover that money — there is no penalty for filing when you are not required to.
You may also want to file to claim tax credits that reduce your tax bill or increase your refund. The Earned Income Tax Credit (EITC) is rare for retirees, but the Saver's Credit (also called the Retirement Savings Contributions Credit) can help lower-income retirees who made contributions to an IRA or workplace retirement plan. You must file to claim this credit.
If you have dependents or own a home, you may have deductions or credits that lower your tax bill below zero, resulting in a refund. Filing is the only way to recover that money.
How to find out what the current threshold is
The IRS publishes income thresholds each year in early February. You can find them on the IRS website under "Filing Requirements" or in the instructions for Form 1040. The thresholds change annually because they are adjusted for inflation.
If you use tax software or work with a tax preparer, they will use the current year's thresholds automatically. If you are deciding on your own whether to file, look up the threshold for your filing status and age in the year you are filing for — do not assume last year's number applies.
The IRS also publishes a worksheet in the Form 1040 instructions that walks you through the calculation if you have Social Security income. This worksheet accounts for the half-Social-Security rule and helps you determine whether your combined income exceeds the threshold.
What happens if you do not file when you should have
If you were required to file but did not, the IRS may send you a notice. The penalty for not filing is usually 5 percent of the unpaid tax for each month the return is late, up to 25 percent total. If you owe no tax — because your income was low or you had large deductions — there is no penalty, but you also lose the chance to claim a refund if you overpaid.
If you realize you should have filed in a previous year, you can still file that return. There is no time limit on filing a return to claim a refund, though the IRS will only refund taxes paid within the last three years. Filing late does not trigger a penalty if you owe no tax.
Frequently Asked Questions
Do I have to file if I only receive Social Security?
No, not in most cases. If Social Security is your only income, you do not have to file no matter how much you received. You only have to file if you also have other income — wages, self-employment, interest, dividends, or other sources — and your combined income exceeds the threshold for your age and filing status.
What if I had taxes withheld from my pension or IRA but I am not required to file?
You can still file to claim a refund of the taxes withheld. There is no penalty for filing when you are not required to. If the withholding was more than your actual tax liability, filing gets you the difference back.
Do I need to file if I am still working part-time in retirement?
It depends on how much you earned. If your wages plus any other income (including half your Social Security) exceed the threshold for your age and filing status, you must file. For 2024, a single person age 65 or older must file if they earned more than $15,600 in wages.
What if my spouse is not yet 65 but I am?
If you are married filing jointly and only one spouse is 65 or older, the threshold for 2024 is $26,950 in combined income. If you are filing separately, each spouse uses their own threshold based on their age.
Where do I find the filing threshold for the year I am filing for?
The IRS publishes thresholds each year in the Form 1040 instructions and on the IRS website under "Filing Requirements." Thresholds change annually for inflation, so always check the current year's number rather than using last year's threshold.