Do I Have to File Taxes if I Only Made $1,000?
If you earned $1,000 this year, there is a good chance that you do not need to file taxes, but this could end up costing you hundreds of dollars. You can still receive tax credits no matter what your income. Whether you have to file for taxes depends on where this money came from.
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Identification
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If you earned $1,000 as an employee, you do not have to file taxes. In 2009, the earners that had the lowest income requirement to file taxes -- $3,650 -- were those who are married, but filing separately, according to MyDollarPlan. If someone claims you as a dependent, you have to file taxes if you earned more than $950 in 2010.
Self-Employment
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The IRS requires taxpayers to file for earning at least $400 from self-employment income -- and pay their own employment taxes, according to the IRS. Even if this income came from prizes and awards -- including gambling -- you must file taxes. You can, however, deduct gambling losses from your winnings.
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Benefits
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You could receive a net return from the IRS due to tax credits -- actual dollar amounts the IRS returns to you regardless of your tax obligation. The Earned Income Tax Credit, for example, goes to people who earn little money. You can also receive money back from any federal income tax withheld by your employer. Other important credits include the Refundable American Opportunity Credit for college costs and the Additional Child Tax Credit.
Other Situations
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You must file taxes if this $1,000 came from a church or church-run organization. If you sold a home, you are required to file, but you may not have any tax obligation. Some retirement accounts have special taxes. You must file, for example, if you made too many contributions to an Individual Retirement Account or Medical Savings Account.
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References
- H & R Block: Tax Tips & Calculators
- MyDollarPlan: How Much Money Do You Have to Make to File Taxes?
- Internal Revenue Service: Gambling Winnings Are Always Taxable Income
- Internal Revenue Service: Do You Need to File a Federal Income Tax Return?
- Internal Revenue Service: Do I have to File a Tax Return?
- Photo Credit TAX TIME image by brelsbil from Fotolia.com
