Income Threshold Required to File Federal Tax Return
Federal income taxes are due from everyone who earns more than a threshold amount, which varies with age, marital status and the number of dependent children that you have. The amount changes every year as the Internal Revenue Service raises the amount of money exempt from income tax via the standard deduction and the personal exemption. An easy calculation will reveal whether or not you earn enough money to pay income tax.
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Background
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The IRS allows you to itemize deductions you may take from your income. If you do not itemize deductions, then you may take a "standard deduction," which for the tax year of 2009 amounted to $5,700.00. In addition, there is a personal exemption you can take for yourself and all those you list on your return, in the amount of $3,650.00.
Single
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Add your standard deduction of $5,700.00 (if you are not itemizing) to your personal exemption of $3,650.00. The result is the threshold for a single taxpayer with no children: $9,350.00. If you make over $9,350.00, you will owe federal income tax; the rate will vary with your net income as figured on the tax return. If you itemize deductions in an amount greater than $5,700.00, then your threshold amount will rise proportionally.
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Married
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Double the standard deduction and personal exemption amounts, then add them together. The standard deduction amounts to $11,400.00, and personal exemptions add up to $7,300.00. Thus for those filing as married with no dependents, the income threshold for federal taxes is $18,700.00.
Married with Dependents
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Add up personal exemptions of $10,950.00 (if you have just one dependent) and the standard deduction for married couples in the amount of $11,400.00; the threshold amount is $22,350.00. Children are allowed personal exemptions in the same amount as adults. For a family with two dependents, the threshold is $26,000.00; it increases by $3,650.00 for each additional dependent.
Head of Household
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Add the standard deduction for "head of household" filers of $8,350.00 to the personal exemption of $3,650.00; the income threshold if not itemizing as head of household is $12,000.00; additional dependents add $3,650.00 each to this amount.
Blind or Over 65, Widow(er)
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Add $1,100.00 to the standard deduction for married couples filing joint returns, or for those individuals filing as married but separate; add $1,400.00 if you are filing as single or head of household. The personal exemption of $3,650.00 remains the same. If you are filing as a widow or widower, and you have dependent children, your threshold is $15,050 if you are younger than 65; $16,150 if you are 65 or older.
Dependent
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If you are claimed as a dependent by someone else, the IRS requires you to pay tax on unearned income (such as interest and dividends) of more than $950.00; and on earned income of more than $5,700.00.
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References
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