Is There a Minimum Earning Amount to File Taxes?

Some wage earners with limited income are not required to file tax returns.

Filing a federal tax return is required once your taxable income in any calendar year reaches a certain limit set by the Internal Revenue Service. The cutoff depends on your marital status, your age and whether you are disabled. Once your earnings go over the threshold, you must file a federal tax return, even if you don't actually owe taxes.

Age Considerations

Age is a factor when it comes to tax filing requirements. Individuals over the age of 65 have higher minimum-income requirements than younger taxpayers.

Filing Status

Each year, the IRS sets income-based filing requirements that vary depending on your tax filing status. Married taxpayers who file a joint tax return are allowed to earn the most income before mandatory filing requirement kicks in. A qualifying window(er) with dependent children and "head of household" filers, meaning single taxpayers with one or more dependents, also have a higher income threshold before tax filing is required. Single taxpayers and married individuals who file separate tax returns have the lowest income threshold.

Benefits of Filing

Filing taxes may be advisable, even if you are not required to file and do not owe any taxes. Lower income taxpayers may be entitled to a number of tax credits that could result in a refund, even if you paid no taxes during the year.

Credits and Payments

Available tax credits that many taxpayers might qualify for include the additional child tax credit, earned income credit, estimated taxes paid throughout the year, excess Social Security tax withheld, federal income taxes withheld from wages, credit for being a first-time home buyer, government retiree credit, the Making Work Pay credit and prior-year minimum taxes paid with an extension.

Penalties

The penalty for not filing a tax return when you are required to do so is 5 percent of any taxes owed for each month or partial month, up to 25 percent, plus interest.

References

• IRS: Your Federal Income Tax - Tax Guide