Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19380  
Subject: Re: How much can Grandmother earn before taxed? Date: 1/6/2001 5:49 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
She's frightened of making too much income and having to pay taxes.

If her income, excluding Social Security, is $8,550 or less in 2001, she won't have any Federal income tax due. (This assumes she is not blind and uses the standard deduction.) The next $27,050 is taxed at 15%.

You said she is receiving SSI. If it's truly Supplemental Security Income, it is tax-free. If she's receiving standard Social Security benefits, they are tax-free unless 1/2 of her SS plus her other income exceeds $25,000. If so, some of her SS benefit will be taxed. (There's a worksheet on the back of the SS 1099.)

You can get the 2001 tax rate schedules on the 2001 Form 1040-ES, available from the IRS website.

Phil Marti
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next


Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Berkshire Hathaway

IBM: Is Buffett Wrong, or Brilliant?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.