How Much Money Do You Need to Make to File Taxes?
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Tax season comes every year, without fail. If you are familiar with taxes, this article may not be for you. However, if you’ve recently begun your first job or earned very little money last year, you may be thinking, “How much money do you need to make to file taxes?Good! Taxes can be quite complicated and hence it is normal to have questions on the same.
It is often asked why one should undertake a task if he or she does not have to file, and this case is no different. Regrettably, the remedy is not unambiguous.
There are set few rules that define the possibility of filing the federal taxes with the IRS depending on the income, age and marital status of the individual. This page provides information on the income requirements which qualify a person to fill the tax return document.
Tax Status:
If you want to find out you specifically must submit taxes or not, then first of all perform simple self-assessment.
- Single and under 65: For example, depending on the state, a worker can make up to $12,400 per annum without any deductions of taxes.
- Single people aged 65 and over: Have a higher income criterion of $14,050.
- Married and filing jointly (both under 65): The total income must be at least $24,800 to trigger filing.
- Married couples filing jointly (65 or older): Must have a combined income of at least $27,400.
- Married couples filing jointly (one spouse aged 65 or older): The threshold is $26,100.
- Married and filing separately: You must file if you earn more over $5.
- Head of Household (under 65): You must file if your income exceeds $18,650.
- Head of Household (65 and older): The threshold is $20,300.
You Might Want To File Anyhow
Even if you earned less than the required amount, it is prudent to file a tax return. Filing can assist to avoid identity theft by ensuring that a fraudster does not submit a return under your name. If the IRS has your valid return on file, it is more probable that they will detect fraudulent behavior.
You could also receive a refund. Taxes may have been withheld from your salary, or you may be eligible for credits or deductions that would put money back into your pocket. Filing guarantees that you get any possible reimbursements.
The Bottom Line
Everyone should evaluate their own position. Calculate your prior year’s income and compare it to the criteria shown above. If you made more than $12,000, you should submit a federal tax return. If it’s still unclear, consult with a tax professional or use a tax preparation software that has a stamp of approval from the IRS. The websites of the IRS also contain relevant information to be used. You need the services of a tax specialist to ensure that you meet all the deadlines for filing tax returns as well as that you pay adequate taxes.
Omission is also a critical mistake that if done may lead to greater penalties. The post also has a message to the possible victims of IRS: the agency will not accept the ‘I didn’t think I had to file’ excuse, so file on time and in the right manner to eliminate the stress of owing back taxes.
Editor-in-Chief • Industry Trends Writer
Ethan analyzes market shifts and predicts future developments in different industries to keep his audience well informed and ready.
