22 Feb Do I have to file a tax return?

Q. If my combined Social Security and unearned income is $25,000 or less, do I have to file a return?
— Trying to avoid it

A. Wouldn’t it be nice to skip filing a tax return?

There are a number of factors that determine whether or not you need to file in any specific year.

“The quick way to determine if you need to file or not is to find your standard deduction for that tax year based on your filing status and then find your personal exemption and add that to your standard deduction,” said Matthew Masterson, a certified financial planner with RegentAtlantic in Morristown. “If your income is less than that amount, you may not need to file.”

Masterson offered this example:

A single individual in 2017 would have a standard deduction of $6,350 and a personal exemption of $4,050, for a combined total $10,400. Note that if you are older than 65, you can increase your standard deduction by $1,550, bringing the total deduction/exemption amount to $11,950.

He said with the tax reform passed in late 2017, the numbers changed. For the same example, the total amount would be $13,300 because the standard deduction is $12,000, the personal exemption has been eliminated and the increased deduction amount for those 65 and older is $1,300, he said.

Because your Social Security income and unearned income exceed this amount, it looks like you will need to file a return for 2017, Masterson said.

He recommends you take a look at this IRS’ questionnaire that helps you determine if you need to file a tax return.

Masterson said other reasons you may need to file a return include if you received distributions from a Health Savings Account or Qualified Retirement plan account. In addition, he said, it is important to keep in mind that even if you do not have to file a federal tax return, you may still need to file a tax return with your state. New Jersey, for instance, provides just a $1,000 personal exemption and an additional $1,000 for those over age 65, he said.

Email your questions to .

This post was first published in February 2018.