Which Income Levels Need to File Income Tax?
The first income tax in the United States levied a maximum of 7 percent and only 1 percent of the population paid any taxes in 1913. Today, the tax brackets are wider and many more people are required to file a return and pay taxes.
Other People Are Reading
-
Filing Status
-
The income levels depend on your filing status and are adjusted annually for inflation. There are different thresholds for each of the filing statuses: single, head of household, married filing jointly, married filing separately and qualifying widow(er) with a dependent child. If you are self-employed your filing threshold is significantly lower.
Considerations
-
You should file an income tax return if you had taxes withheld that you want refunded, or if you expect to have tax credits that will result in the government owing you money.
-
Misconceptions
-
Whether you are required to file a tax return is determined solely by income regardless of your age. If you are 18 or under and a dependent, the IRS allows you to include your income on your parent's tax return if these conditions are met: the total income is under $9,000 and it comes only from interest and dividends, according to IRS Publication "Parent's Election To Report Child's Interest and Dividends."
History
-
Personal income taxes became a permanent part of American law in 1913 when the 16th amendment was passed. Before that, an income tax had been used briefly during the Civil War but was repealed soon after the war ended.
Fun Fact
-
During World War II, President Franklin Roosevelt signed an executive order imposing a 100 percent tax on all incomes over $25,000. This order was quickly overturned by Congress, but the highest marginal tax rate reached 94 percent during the war.
-
