Believe it or not, there may be years when you don't have to file an income tax return with the Internal Revenue Service. To make this determination, you need to evaluate a number of factors, such as the amount of income you earn and your filing status. It also depends on whether you’re the dependent of another taxpayer, and a number of special circ*mstances that require the filing of a tax return regardless of other factors.
IRS income thresholds
If you aren't the dependent of another taxpayer, you will have to file a tax return if your gross income is greater than or equal to the amount set each year by the IRS. This threshold amount is largely dependent upon the standard deduction for your filing status. Your total gross income for the year includes all earnings that aren't exempt from income tax. If you plan to file a joint return with your spouse, you must include the income you both earned.
Taxpayers 65 and older
The IRS increases the standard deduction amount for taxpayers who are 65 or older by the end of the tax year. As a consequence, the income threshold you use to evaluate whether you should file a tax return also increases. If your 65th birthday falls on January 1, you can take the larger standard deduction for the prior tax year since the IRS treats you as being 65 on December 31.
Dependent filing requirements
When other taxpayers, such as your parents, are eligible to claim you as a dependent on their tax return, you still may need to file your own return. If the total of your unearned income is more than $1,250 for 2023 or $1,300 for 2024, you need to file a return even if it is not required by your earned income. Unearned income covers all other earnings, such as taxable interest, dividends, and capital gains that aren't the result of performing services.
Dependents who are 65 and older, blind, or married are subject to the dependent filing rules, but the IRS raises the income filing thresholds for these taxpayers.
Special filing situations
Regardless of special circ*mstances, you are expected to file a tax return if you owe taxes other than income tax. These taxes include Social Security taxes, alternative minimum taxes, or household employment taxes. Other situations where you will also have to file include: if you're self-employed and earned at least $400 during the year, or if you received distributions from a health savings account.
Although you may not be required to file a tax return, you may still want to file a tax return if you had any withholdings that can be refunded, or if you qualify for any refundable credits.
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FAQs
Most U.S. citizens or permanent residents who work in the U.S. have to file a tax return. Generally, you need to file if: Your gross income is over the filing requirement. You have over $400 in net earnings from self-employment (side jobs or other independent work)
Is it OK not to file income tax? ›
Not everyone needs to file an income tax return each year. If your total income for the year doesn't hit certain IRS thresholds, then you may not need to file a federal tax return. But you may want to file a return anyway - there may be benefits to doing so.
Is it mandatory to file a tax return? ›
Generally, you must file an income tax return if you're a resident , part-year resident, or nonresident and: Are required to file a federal return. Receive income from a source in California. Have income above a certain amount.
How much income does not need to file tax return? ›
About filing your tax return
If you have income below the standard deduction threshold for 2023, which is $13,850 for single filers and $27,700 for those married filing jointly, you may not be required to file a return.
What makes you not required to file taxes? ›
At a glance
In 2023, for example, the minimum for Single filing status if under age 65 is $13,850. If your income is below that threshold, you generally do not need to file a federal tax return. At tax time, not everyone needs to file a tax return before Tax Day in the United States.
What happens if I just don't file my income taxes? ›
If you fail to file your taxes by April 15 and do not request an extension, the IRS may assess a failure-to-file penalty on the amount of any unpaid taxes. The penalty for failing to file is 5% of the unpaid taxes for each month your return is late, with a maximum of 25% of the total balance due.
Can I skip a year of filing taxes? ›
The law requires you to file every year that you have a filing requirement. The government can hit you with civil and even criminal penalties for failing to file your return.
Can you refuse to file taxes? ›
Any taxpayer who has received more than a statutorily determined amount of gross income is obligated to file a return. Failure to file a tax return could subject the noncomplying individual to criminal penalties, including fines and imprisonment, as well as civil penalties.
Is it a crime to not file tax returns? ›
Under 26 U.S.C. § 7203, it is a crime to intentionally fail to file a return, pay a tax, keep necessary records, or provide information that is required by the IRS. Any of these four separate offenses, on their own, is a violation of this section.
At what age is Social Security no longer taxed? ›
Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.
Generally, you need to file if:
- Your gross income is over the filing requirement.
- You have over $400 in net earnings from self-employment (side jobs or other independent work)
- You had other situations that require you to file.
At What Age Can You Stop Filing Taxes? Taxes aren't determined by age, so you will never age out of paying taxes.
Do I need to file taxes if I only get Social Security? ›
Generally, if Social Security benefits were your only income, your benefits are not taxable and you probably do not need to file a federal income tax return.
Who are exempt from filing taxes? ›
Generally, you don't have to pay taxes if your income is less than the standard deduction, you have a certain number of dependents, working abroad and are below the required thresholds, or are a qualifying non-profit organization.
Do I have to report income under $600? ›
Yes. The IRS requires that you report all of your income, even if it's less than $600 and you didn't get a tax form for it. Follow these steps to enter your income. We'll ask you some questions to determine if your income is from self-employment or is ordinary income.
Does Social Security count as income? ›
You must pay taxes on up to 85% of your Social Security benefits if you file a: Federal tax return as an “individual” and your “combined income” exceeds $25,000. Joint return, and you and your spouse have “combined income” of more than $32,000.
Is it better to not file taxes or file and not pay? ›
Four reasons you should file even if you can't pay
If you don't file your return on time and pay the tax you owe, the IRS will charge you (or, “assess”) a failure to file penalty that can add up to 25% more to your tax bill. On top of that, the IRS charges interest on the taxes and the penalties you owe.
Why would someone not file tax returns? ›
Emotional or financial reasons may cause a person to not file. Or it could simply be due to procrastination. Unfortunately failing to file a return creates additional problems.
Should someone with no income file taxes? ›
It's perfectly legal to file a tax return even if your income falls below the IRS minimum requirement to file.
