Not exactly, but there are additional benefits:

*increased standard deduction;
*partial SS income taxation;
*many live off of investment income which has lower tax rate.

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- quote -

remember?

Cheer$,
Harlan Lunsford

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- quote -

I'm old enough to remember the double personal exemption,
even if our moderator (cf "Just for the record") isn't.
<grin
--
Don EA in Upstate NY

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Big-Dave" <dlb01[at]sstar.com> wrote:

- quote -

Sounds like your neighbor got confused by the taxability of
Social Security benefits. If total income, including half of
Social Security, amounts to $25,000 or more, part of the
Social Security benefits may be taxed. But taxable income is
still taxed, and nothing provides that a person over 75 gets
special exemptions or deductions that make anything like
$30,000 nontaxable.

Anyone over 65 can make at least $11,000 or so in taxable
income without owing any tax, thanks to the double personal
exemption, so your mother still may owe no tax.

--
Forgive us our flats
As we forgive those
Who transpose against us
Chris Green

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"Big-Dave" <dlb01[at]sstar.com> writes:

- quote -

No. There is no such provision.

- quote -

That or a crook.

Phil Marti
Topeka, KS

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dlb01[at]sstar.com (Big-Dave) posted:

- quote -

Age is only a factor in determining standard deductions.
(It is a significant factor in Social Security earnings
allowed -- but not over 70.)

Based on your figures, your mother almost certainly
shouldn't owe any income taxes, anyway. If you're including
the SS ($500 a month = $6,000), her remaining income is less
than $9,000 -- and in 2003, anyone 65 or older with an
income less than $8,950 would not even be required to file a
return (though, if they were employed, as your mother was,
they should - in order to obtain a refund of any taxes
withheld).

- quote -

There are many Urban Legends about taxes, just like
everything else. Most are false.

- quote -

Read my first answer. It's likely your mother owes no tax,
anyway. But the only special allowance for [old] age is the
increased standard deduction.

Bill

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"Dave Woods" <davidwoods[at]verizon.net> wrote:
- quote -

Thanks for taking the time to reply. I will leave my
neighbor in his confused state, whats that saying...
"ignorance is bliss"

Thanks again
Dave

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- quote -

Yep.

Don't take tax advice from him.

Carol
What can one expect of a day that begins with getting out of bed.

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"Big-Dave" <dlb01[at]sstar.com> wrote:

- quote -

Your neighbor is confused (and lets leave it at that).
Age can affect components of taxation, but subject to
taxation is not one of them.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Boston, MA 02109

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Hi, my mother will be 75 shortly and she works 5 days a week
4 hours a day [at] 6.20 an hour. Her Social Security is about
$500 a month and she gets a very small pension, so total
yearly income is less than $15,000.

My neighbor who is 77 and still works said he does'nt pay
Federal income tax any more. He said he was told if he made
under $30,000 and over 75 he was exempt. He insist they do
not take it out on his check anymore. I did not see the
check stub.

So my question is, can my Mom take advantage of this? Do you
think my neighbor confused.

Thanks
Dave

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