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An Illinois 90 year old single resident has 2022 social security income of $18,000 and $14,000 of pension income. Does this person need to file a federal and Illinois state income tax form for 2022?
AI accountant’s answer:

For the federal income tax, whether or not you need to file a return depends on your income, age, and filing status. In 2022, if you're single, under 65, and your income was at least $12,550, you'll need to file a return. If you're 65 or older, that threshold increases to $14,250. However, not all income is counted the same. Social Security income is often not fully taxable. If Social Security was your only source of income, then your benefits may not be taxable, and you may not need to file a federal income tax return. But if you have other substantial income (such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return) in addition to your benefits, part of your benefits might be taxable.

In your case, you have $14,000 of pension income in addition to your Social Security income. This could make part of your Social Security benefits taxable. You'll need to do a calculation to determine if any of your Social Security income is taxable. If it is, and your total income including the taxable portion of Social Security is over $14,250, you'll need to file a federal return.

As for Illinois, the good news is that Illinois does not tax retirement income. This includes Social Security benefits, pension income, and income from retirement savings accounts. So, you won't need to file a state return based on this income. However, if you have other types of income, you may still need to file an Illinois state return.

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