How to Know What is the Minimum Income to File Taxes

Curious what is the minimum income to file taxes? While this information is important to know, you may find it's beneficial to file an income tax return even if you fall below the threshold, as you may receive a tax return of Federal income taxes paid as well as an Earned Income Credit and Additional Child Tax Credit money. Read on to find out more about minimum income to file taxes.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Income information

1. Calculate how much money you earned during the tax year for which you're filing. If earned income, combined with social security benefits, totals $3,000 or more, you have hit what is the minimum income to file taxes.

2. Consider your self employment income. If you earned more than $400 through extra income in your own side jobs or as an independent contractor, you're supposed to file an income tax return.

3. 
   Earned Income from Tips

   Did you earn money from tips? If you didn't report these tips to your employer, or reported them but didn't pay social security and medicare taxes on them, you will have to file a federal income tax return.

4. Do you qualify for the Earned Income tax credit for low-income individuals and families? If so, or if you already received and advance EIC payment, you'll need to file taxes this year.

5. Did you have federal taxes withheld from your earnings in your paychecks? To get some of this money back, you'll need to file tax returns.

Tips & Warnings

• While the minimum income to file taxes is $3,000, there are many reasons why filing will benefit you even if you earned less than this amount. In many cases, you will receive money back form the IRS -- especially if there is another economic stimulus program.

Resources

• Get your refund in as little as 9 days. E-file with TurboTax today. It's Easy.

[mikelb]

on 10/18/2009 I wonder where the $3,000 amount comes from. The federal income tax code is quite complex; therefore, the writer should have had more detail for each of his 5 steps. Written as it is will mislead some readers. However, there are some good points in this article, such as Step 5, although the points do need more details. For example, in Step 5, if the amount withheld from paychecks is LESS THAN the year's tax liability, there will NOT be any refund. So when writing about federal income taxes, more clarity, please --MikeLB

[gessie]

on 11/28/2008 Thank you for this information. Very Helpful!

[Gardengates]

on 10/27/2008 I guess tax time IS rolling around. Thanks for the helpful advice!