"Mark Bole" <makbo[at]pacbell.net> wrote in message
news:btPgl.16594$c45.5559[at]nlpi065.nbdc.sbc.com...
- quote -

Wrong. IRC Section 86(c)(3) says "zero, in the case of ... [MFS filers]
[who don't live apart....]

I'm still right - it is relevant for MFS filers and their filing threshold,
because there may exist a condition where it does count from $1 up.

Remember that we're talking about thresholds, not actual inclusion into
gross income.

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On Jan 30, 8:01*pm, "D. Stussy" <s...[at]bde-arc.ampr.org> wrote:
- quote -


- quote -

have now reached a point where the taxable amount may take a taxpayer
over the filing threshold.
E.g: Married couple both under age 65. Filing requirement is Taxable
GI of $17,900. Couple has Interest, Dividends and Pension that totals
$17000. Their combined SSA benefits are $36000. 1/2 of $36000 =
$18000 + $17000 = $35000. That's $3000 over the $32000 limit. $1500 of
SSA benefits is taxable. $1500 + $17000 = $18500 of Taxable GI. They
have to file. This is why Pub 501 and the instructions for the tax
forms now includes the clause that Phil mentioned.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

D. Stussy wrote:

- quote -

I love that phrase!

- quote -

Nope, see IRS pub 915.

"Base amount. Your base amount is:
• $25,000 if you are married filing separately and lived
apart from your spouse for all of [the tax year]"

-Mark Bole

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

In article <gm0bff$1de$1[at]snarked.org> ,
D. Stussy <replies[at]newsgroups.kd6lvw.ampr.org> wrote:
- quote -


In Ohio, perhaps 1/3 of my older couples file MFS returns. Because Ohio
pays them to do it. And when they would pay on 85% of social security
whether filing MFS or MFJ, and Ohio allows a $200 pension credit per
tax return and a $50 senior credit per tax return, and has a steeply
increasing tax rate structure with a single tax table regardless of
filing status, it is easy to see why.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Phil Marti" <prm20871[at]verizon.net> wrote in message
news:I%Ngl.145$eK2.8[at]nwrddc01.gnilink.net...
- quote -

SS benefits are not relevant as to the filing requirement. Why? Because
if one has the "other income" of $25k/$32k to make SS taxable, one already
exceeds the filing requirement based on that other income. In the range
where the filing requirement is an issue, SS benefits will be non-taxable
by statute.

Of course, MFS filers get screwed - in that their threshold is zero, so
they are the only group that always has to count it. However, in reality,
how many senior citizens file separately from their spouses? Usually, its
MFJ or single (widow[er]s) for that age group.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

In another forum I recently addressed the question of whether SS benefits
are included when determining if the taxpayer must file. I started my
knee-jerk "no" response, then decided to look at the 1040 instructions since
I had just been preaching to a class about not working from memory.

Lo and behold, there's now an indication to include 1/2 of the SS benefit
(and the $25,000 and $32,000 thresholds) in determining the filing
requirement. I went back and checked 2007, and sure enough, there was a
flat exclusion of SS income.

I haven't had time to research it, but I suspect that in years prior to 2008
even if a couple got the maximum SS benefit they wouldn't have a filing
requirement if they didn't have other income at least equal to the filing
requirement, but the combination of indexed benefits and a static threshold
for taxable benefits finally pushed it over in 2008.

--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >