Filing Taxes for Senior Parent on Social Security Only - Required?

Thanks for that info. But what if my mom was filing for years just because she thought she had to? Will the IRS wonder why she suddenly stopped filing? And does this change anything about claiming her as a dependent on my taxes?

The IRS won't be concerned about her suddenly stopping if she truly doesn't meet the filing requirements. Many seniors file unnecessarily out of habit or because they're not aware of the exemption. There's no penalty for filing when you don't need to, but it's unnecessary paperwork. As for claiming her as a dependent, that's completely separate from whether she files or not. You can still claim her as a dependent if she qualifies - meaning you provide more than half her support, her gross income is less than $4,700 (for 2024 returns), and she meets the other dependent tests. Social Security generally doesn't count toward the gross income test for dependency purposes.

How does that service work exactly? Does it just analyze documents or does it actually help with filing decisions? My mother-in-law is in a similar situation and I'm trying to figure out if we're handling things correctly.

Seems unnecessary to pay for a service when the rule is pretty straightforward - SS-only income doesn't require filing. Did they charge a lot? What additional value did they provide beyond what you could learn from free IRS resources?

It analyzes your documents and provides specific guidance for your situation. You upload relevant tax documents and it reviews them to determine filing requirements based on your specific circumstances. They also provide explanations about the relevant tax laws that apply to your case. There's tremendous peace of mind knowing a specialized system has confirmed your situation. While the general rule about SS-only income is simple, there are exceptions and special circumstances, especially when considering potential dependent status, that can complicate things. Having documentation explaining why no filing is required was valuable when dealing with financial advisors who questioned the decision.

Wait, so this service somehow gets you through to the IRS faster? How does that even work? The IRS phone system is notoriously impossible to navigate.

Sounds like a scam to me. Nobody can magically get through to the IRS. They're probably just charging you to call the same number you could call yourself. Did they actually connect you with a real IRS agent or just someone claiming to be one?

Yes, they use technology to navigate the IRS phone system and secure your place in line. When they reach an agent, they call you and connect you directly to that agent. It's completely legitimate and saves hours of frustration with busy signals and hold times. They don't claim to have special access - their system just handles the waiting and navigation for you. And yes, it was definitely a real IRS agent - they transferred me directly into the IRS phone system once they reached the front of the queue. I was able to verify my mom's information and get official confirmation about her filing requirements.

That's really helpful advice! Would you recommend I get something in writing from a tax professional stating that my father doesn't need to file anymore? Or is my own documentation sufficient?

Your own documentation is usually sufficient. Just create a simple dated memo stating "As of [date], [parent's name] no longer files tax returns as their only income is Social Security benefits, which falls below the IRS filing threshold." Include any reference to IRS publications that support this (Publication 915 covers Social Security taxation). A tax professional's statement isn't necessary but can provide extra reassurance if you're concerned. Some tax preparers will provide a simple letter confirming non-filing status at little or no cost if you've used their services before. Just having something in your parent's financial records explaining the change helps if questions arise during future care transitions or estate matters.

Not filing taxes won't negatively impact a Medicaid application. In fact, it's completely normal for Medicaid applicants who only receive Social Security to not file tax returns. Medicaid eligibility is based on current income and assets, not on tax filing status. They'll still want to see proof of all income sources (including the SSA benefit statement), but they won't expect or require tax returns if there's no filing requirement.