Special Rules

• The Internal Revenue Service determines your age and filing status on the last day of the filing period. The day before your birthday determines your age, so if you are 65 on January 1 you are 65 on December 31 for income tax purposes. Rely on Publication 17 from the IRS to review requirements for the current tax year.
  
  

Gross Income

• Gross income is all of the income in money, goods, property and services you made in the tax year, including the sale of your home and income made outside the United States. Do not include your Social Security benefits until you calculate your combined income. Add your adjusted gross income from IRS Form 1040 and nontaxable interest plus 50 percent of your Social Security income to arrive at a combined income figure. If this figure is over $25,000 if you file singly or $32,000 for married filing jointly, use this figure for determination of whether you need to file a federal income tax return or not.
  
  

Calculations

• If you are single under 65 filing individually in 2010, your gross income can total $9,350 without requiring you to file a tax return. If you are over age 65, your income can total $10,750. If you file as married filing jointly, your joint income can total $18,700 if you are under 65. If you are both over 65, file a tax return if your income is over $20,900; if only one of you has reached age 65, the cut-off for filing a tax return is $19,800. Use the interactive tax assistance on the IRS website to confirm if you need to file a federal income tax return.
  
  

Considerations

• Be sure to file a federal income tax return if you may be subject to alternative minimum tax, or if you may owe any special tax on an Individual Retirement Account or Medical Savings Account or recapture tax. Church employees who make more than $108.28 from a church or self-employed persons who make more than $400 in net earnings must file a federal income tax return. Another reason you may have to file a federal tax return is if you owe Social Security or Medicare tax on unreported tips or uncollected Social Security or Medicare tax on tips reported to your employer. A special rule applies to someone who did not live with the spouse at the end of 2009 or at the time of a spouse's death and who made more than $3,650. If this special rule applies to you, you must file an income tax return at any age.
  
  

Misconceptions

• You may not have to file a federal income tax return but may choose to file to get a rebate or refund or an earned income tax credit. Check every year on the IRS website or in the instruction booklet you receive to see if special rebates apply. If you had taxes withheld or if you paid quarterly taxes, file an income tax return to get a refund. Additional child tax credit or a health coverage tax credit may qualify you for a refund. Most refunds require filing a tax return.