It’s a question you probably ask yourself every year.
“Do I have to file my taxes?”, you ask yourself accompanied by a huge sigh.
You’re usually just joking, asking rhetorically because you know the answer. Another year, another round of taxes to file.
Even Benjamin Franklin seemed to predict this reality for you when he famously noted that there are only two certainties in this world, “death and taxes”.
If this is your yearly ritual, you might be surprised to learn that under certain conditions, you may not be required to file your taxes.
There are other situations where, although you may not be required file, it still would be in your best interest to do so.
This article is going to cover some of the situations you may find yourself in where you are not required to file taxes.
How Income, Age, and Filing Status Affect Whether or Not You Have to File Your Taxes
The IRS has different income thresholds that affect whether you must file a Federal Tax Return or not. If these thresholds are met, you are required to file. These income thresholds change, however, depending on factors such as age and filing status.
For each filing status, the thresholds that will determine whether or not you must file a Federal Tax Return are as follows:
- Single: $12,000 if under 65 years of age; $13,600 if 65 or over
- Head of Household: $18,000 if under 65 years of age; $19,600 if 65 or over
- Married Filing Separately: $5, regardless of age
- Married Filing Jointly: $24,000 if both spouses are under 65 years of age; $25,300 if one spouse is 65 or older; and $26,600 if both spouses are 65 or older
- Qualifying Widow/Widower with Dependent Children: $24,000 if under 65 years of age, $25,300 for those 65 and older
The above minimum income thresholds are not related to self-employment income earned. No matter your age and filing status, if you’re a small business owner or freelancerand have earned $400 or more in self-employment income, you’re required to file a return.
Income From Social Security
If you’re retired, older than 65 years of age, and get your income through social security benefits, you may wonder whether that affects how you may fall into the above thresholds.
You may wonder, even if your total social security benefits do exceed the above thresholds, whether you’d have to pay taxes to the government on this income.
The above thresholds primarily relate to earned income, not unearned income. Social security benefits fall into the latter category.
If the entirety of your income is from social security, it’s unlikely you have to file a tax return.
If you receive some earned income at the same time as earning social security benefits, then you may have to send in your taxes.
Whether you do or not depends on thresholds of combined income, which are different than the above thresholds on earned income. Combined income is factored as the combination of earned income (or adjusted gross income), tax-exempt interest, and half of their social security benefits.
The combined income thresholds for those who earn part of their income from social security are also affected by different filing statuses and are as follows:
- $25,000 for those filing as single, heads of households, a widow/widower with a dependent child
- $25,000 for individuals who are married but filing separately and have lived apart for the entire year
- $0 for individuals who are married and have lived with their spouse at any point during the year, but are filing separately
- $32,000 for couples filing jointly
If your combined income falls under any of these thresholds for your filing status, you likely don’t have to worry about filing your taxes.
Do I Have to File My Taxes If I’ve Been Claimed as a Dependent on Someone Else’s Return?
Another situation which might lead you to ask the question raised at the outset, “do I have to file my taxes?”, is if you’ve been filed as a dependent on another’s return.
If so, similar to if you were filing independently, such factors as income, age, and filing status apply. However, the thresholds are different, as are the factors of where the income is coming from. Another difference is that these dependent thresholds vary according to whether the person filing is blind or sighted.
As a dependent, you likely aren’t required to file a tax return if your income falls below the following thresholds:
- Over $12,000 in earned income, or $1,050 in unearned if filing as either single or married while being sighted and under 65 years of age
- Over $13,600 earned, or $2,650 unearned if 65 and older or blind and filing as single
- More than $11,650 earned, or $1,950 unearned if filing as single while being 65 or older and blind
- Over $13,300 in earned income, or $2,350 in unearned if filing as married and being 65 and older or blind
- Over $11,650 earned, or $2,950 in unearned income if 65 or older and blind
Please see the links in the previous sections relating to earned income versus unearned income.
Reasons to File a Tax Return Even If You Don’t Have To
Have you managed to escape the various situations and thresholds outlined above and aren’t legally required to file taxes? Believe it or not, there are some situations where it might actually be in your favor to file anyways.
Even if your earned income didn’t meet the above thresholds, if you had taxes withheld you can still get a refund. The IRS doesn’t automatically send these out, so in order to receive one, you’ll need to file.
There are other situations where it would be beneficial to file a Federal Tax Return if you qualify.
These commonly may include being able to receive the Earned Income Tax Credit for low to moderate income working class people.
For those pursuing higher education, they would need to file in order to take advantage of the American Opportunity Tax Credit.
Don’t Go into Tax Season Alone
You’re hopefully no longer asking the question of “do I have to file my taxes or not?”. Still, you may now have some other questions, such as wondering whether or not you should file, even if you don’t have to.
Perhaps you’ve started a new business or began working as a freelancer for the first time. Maybe you have filed but are now being asked by the IRS unexpectedly to pay more in than you feel you should.
Good news—we’re here to help with your tax questions, getting your taxes filed, dealing with the IRS, and much more. Contact us for a free consultation to get the worry-free help you need.