Most Americans are required to file taxes, with 144.5 million of them filing in 2020. Whether you need to file depends on your income, filing status, and age, but in special situations, such as if you have net earnings of at least $400 from self-employment, you may need to file. Even if you are not required to file, you may want to file to claim tax credits and overpayments that could result in money being returned.
Everyone should make sure they are properly prepared because filing taxes is a serious matter. You should consider asking yourself, “How much do I have to make to file taxes?” as one of your questions. You can rely on this article to provide the solution if that is your burning question.
What Is a Tax Return?
A tax return is one or more forms submitted to a taxing authority that detail earnings, outlays and other crucial tax data. Additionally, tax returns give taxpayers the option to determine their tax liability, plan out their tax payments, or ask for refunds for any taxes they have paid in excess of what is required. Tax returns must typically be filed annually for an individual or business with reportable income, such as wages, interest, or other profits.
Note that:
- It is a document submitted to a taxing authority that lists earnings, outlays, and other pertinent financial data.
- Taxpayers compute their tax liabilities, set up tax payments, and request refunds for overpaid taxes on their tax returns.
- Tax returns must typically be filed annually.
How Does Tax Returns Work?
In the United States, tax returns containing data used to compute taxes are filed with the Internal Revenue Service (IRS) or with the state or local tax collection agency (the New York Department of Revenue, for instance). The IRS’s or another relevant authority’s forms are typically used to prepare tax returns.
Furthermore, individuals in the United States file their federal income taxes using different versions of the Internal Revenue System’s Form 1040. Forms 1120 and 1065 are used by corporations and partnerships, respectively, to file their yearly returns. Various 1099 forms are used to report income that is unrelated to employment. An automatic extension of time to file a U.S. individual income tax return can be requested using Form 4868.
Finally, a tax return typically starts with the taxpayer offering personal information, such as their filing status and information about their dependents.
Advantages Of Filing A Tax Return
#1. You can get refunds:
When filing a tax return, people might occasionally receive a refund. For instance, they might be due a refund when they file their taxes if their employer deducted taxes from their pay.
#2. It helps you avoid penalties:
By accurately completing their tax returns on time and paying whatever taxes they owe prior to the deadline, taxpayers can prevent interest and penalties. Therefore, to avoid some disadvantages, they must file on time or ask for a deadline extension even if they cannot pay.
#3. It makes it easier to apply for financial aid:
Students may be required to submit tax account information derived from their own or their parent’s tax return when requesting financial aid. Therefore, people filling out the Free Application for Federal Student Aid can securely and easily transfer their data from their tax return to their FAFSA form thanks to the IRS Data Retrieval Tool.
Self-employed taxpayers must report their income on their tax returns because these details are used to determine their Social Security benefits. Note that an incorrect calculation can result from unreported income.
#5. It helps lenders determine your income:
By disclosing every source of income, taxpayers provide lenders with a complete financial picture that allows them to calculate the loan amounts and interest rates they should be eligible for.
#6. It gives you peace of mind:
Taxpayers who file accurate returns and pay their taxes on schedule are aware that they are abiding by the law. Therefore, you are free of any legal punishment that comes with not filing your taxes.
How Much Do You Have To Make To File Taxes?
If your gross income as a single filer in 2023 was at least $12,950, you almost certainly need to file a tax return if you’re under 65. Here is the minimum income required to file taxes this year, regardless of your filing status or age.
Income requirements to file a tax return
| Under 65 | 65 and older | |
| Single | $12,950. | $14,700. |
| Married, filing jointly | If both partners are under 65, the income requirement is $25,900. $27,300 if both spouses are 65 years or older and one is under 65. | $28,700 if both are 65 or older. |
| Head of household | $19,400. | $21,150. |
| Married, filing separately | $5. | $5. |
| Qualifying widow(er) | $25,900. | $27,300. |
Income requirements for dependents who are single
| Under 65 | 65 and older | 65 or older and blind | |
| Your unearned income was more than … | $1,150. | $2,900. | $4,650. |
| Your earned income was more than … | $12,950. | $14,700. | $16,450. |
| Your gross income was more than the larger of … | $1,150, or earned income (up to $12,550), plus $400. | $2,900, or your earned income (up to $12,550), plus $2,150. | $4,600, or your earned income (up to $12,550), plus $3,900. |
Income requirements for dependents who are married
| Under 65 | 65 and older | 65 or older and blind | |
| Your unearned income was more than … | $1,150. | $2,550. | $3,950. |
| Your earned income was more than … | $12,950. | $14,350. | $15,750. |
| Your gross income was more than the larger of … | $1,150, or your earned income (up to $12,550), plus $400. | $2,550, or your earned income (up to $12,550), plus $1,800. | $3,950, or your earned income (up to $12,550), plus $3,200. |
You must file a tax return even if you meet any of the following criteria:
- You are underage.
- You had a foreign residence or source of income.
- You had a residence there.
- You received money from American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, or the U.S. Virgin Islands).
What Are Some Common Types of Income That Require Filing a Tax Return?
You typically need to file a tax return for a number of different types of income, including:
#1. Wages, salaries, and tips:
If you were paid by an employer, you most likely received a W-2 form that detailed your earnings and the taxes deducted.
#2. Self-employment income:
Generally speaking, you must file a tax return and pay self-employment taxes if you are self-employed and earn $400 or more.
#3. Investment income:
You should generally file a tax return if you receive income from investments like dividends, interest, or capital gains.
#4. Retirement income:
You will typically need to report this income on your tax return if you receive distributions from a retirement account like a 401(k) or Ira.
#5. Rental income:
Generally speaking, you must disclose any income you receive from rental properties on your tax return.
#6. Unemployment compensation:
In general, you will have to report this income on your tax return if you have received unemployment benefits.
In the event that your total income exceeds certain thresholds, you might be required to file a tax return if you receive Social Security benefits.
Finally, it’s crucial to keep in mind that these are only general guidelines and that there may be instances in which you must file a tax return even though your earnings are below the cutoff. Note that to ascertain whether you must file a tax return depending on your particular circumstances, it is a good idea to speak with a tax expert.
Do I Have to File Taxes if I Made Less Than $5 000?
The answer to whether you have to file taxes if you make less than $5,000 depends on your filing status, age, and sources of income, as the detailed guide above states. If you had any federal taxes withheld from your paycheck, you may want to file a tax return.
Furthermore, tax returns must be filed if income is below the threshold, such as if self-employment income is $400 or more, or if income from investments or other sources is above the threshold. Consult a tax professional to determine if you need to file a tax return.
Does My 17-Year-Old Need to File Taxes?
If a minor’s income exceeds the tax deduction ($12,950 for the tax year), they are required to file a return. Therefore, a 17-year-old who makes less than $12,950 per year will not be required to pay taxes, but they are able to file a return to get their earnings withheld back.
Do I Have to File Taxes if I Make Less Than $10000?
The required minimum income varies by age and filing status. For single filers who are younger than 65 in 2022, the required minimum payment is $12,950. Therefore, you typically do not need to file a federal tax return if your income is $10,000 or less.
Do I Have to File Taxes if I Made Less Than $15 000?
Tax filing and payment are not mandated for everyone. The gross income cutoff for filing taxes ranges from $12,550 to $28,500 for the 2022 tax year, depending on your age, filing status, and dependents. Therefore, if you earn $15,000 or more, you must report your earnings and file taxes.
What Is the Lowest Income to Not File Taxes?
The lowest income to not file taxes depends on several factors, such as filing status, age, and sources of income. For the tax year 2022, individuals under 65 should not file a tax return if their total income is less than $12,550. However, certain types of income are not considered when determining whether to file a tax return.
Do I Have to File Taxes if I Only Make $4000?
Tax filing status, age, and income sources can affect whether you need to file a tax return. Single individuals and those under 65 do not need to file a tax return if their total income is less than $12,550. Married couples filing jointly do not need to file a tax return if their combined income is less than $25,100. Self-employment income of $400 and above must be filed.
Can I File Taxes if I Don’t Make Enough Money?
Even if your income is less than what the IRS considers to be the minimum, it is totally legal to file a tax return. Therefore, when filing your return, you may be entitled to claim the extra tax credit if you are eligible for a certain credit but do not owe any tax.
Is it Ok to File Taxes With No Income?
You might be able to forgo filing your tax return and the associated paperwork any year that you have little to no income. However, it is entirely legal to file a tax return that reports no income, and doing so may be wise for a variety of reasons.
How Much Do You Have to Make to File Taxes in Nevada
Individual income taxes are not levied in Nevada. Nevada levies a gross receipts tax but does not have a corporate income tax. Nevada levies a state sales tax of 6.85 percent, a local maximum sales tax of 1.53 percent, and an average state and local sales tax of 8.23 percent.
Furthermore, Nevada is also one of nine states that only taxes certain types of investment income or has no individual income tax at all. The other states are:
- Alaska
- Florida
- New Hampshire
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
Who Is Required to File a Tax Return
A tax return is a document created by a taxpayer with information on his tax affairs for a specific period to comply with tax laws. Therefore, even if a company is legally exempt from paying tax, it is still required to file returns with FIRS.
What Is the Minimum Income to File Taxes in 2023
Those who are single and under 65 years old must file taxes if their annual income exceeds $12,950; those who are single and 65 years of age or older must file if their annual income exceeds $14,700.
WHY DO WE PAY TAXES: Everything You Should Know
TAX LIABILITY: Definition, Examples & How To Calculate It
EIN VS TAX ID: Key Differences
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