How Much Money Do You Have to Make to File an Income Tax Return?
The Internal Revenue Service exempts certain residents from filing for federal income taxes if they meet certain requirements. As with all things related to the IRS, these requirements are multifaceted and somewhat difficult to follow. Your income level for filing is first determined by your filing status, whether single, married or head of household. Beyond that, a number of other complications may necessitate that you file a tax return.
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How Much Earned
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The first determination into whether you need to file an income tax return is the amount of your gross income. Your gross income includes everything you receive as income, whether in the form of money, goods, property or services. Depending upon your filing status and your age, the IRS sets income levels for filing. For an individual younger than the age of 65 and filing single, this amount is $9,350. You will need to consult Publication 17 for your tax year to determine what the income level that applies to you is.
Were Taxes Withheld?
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If you fall below the income requirement for your filing status, but income taxes were withheld from your paycheck by the IRS, you should file. You are very likely due a refund for those payroll deductions. If you want to collect the over-payment back from the IRS, you will need to file a completed return. Otherwise, you will not be eligible to receive a refund check.
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Earned Income Tax Credit
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Congress has mandated a series of tax credits for lower- and middle-class wage earners to ensure they do not pay an excessive share of the national tax burden. This tax policy has been instituted by the IRS in the form of an Earned Income Tax Credit or EIC. If you earn income, but you fall below the mandatory filing requirements, you may be due a refund due to your EIC. You will not receive this credit without filing, and it can result in a refund of hundreds of dollars or more. If you earned income in the form of wages, you should strongly consider filing your taxes to take advantage of this tax credit.
Other Considerations
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Other considerations will necessitate a filing with the IRS, regardless of what your income level or refund status may be. If you earn self-employment income of more than $400 in a tax year, you will need to file. If you sell a home or draw retirement benefits, you will also need to file a tax return. A variety of special situations that may require you to file includie income as a church employee or Alternative Minimum Tax assessments. You should investigate further or consult with a tax specialist if you believe that your situation warrants it.
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