Once the tax season kicks off, you tend to find several taxpayers scrambling to file their taxes. However, as surprising as it may seem, not everyone is in haste to file. In fact, some individuals are not required to file a tax return. That begs the question. Who needs to file taxes?
You are exempted from filing a tax return if your gross income per annum doesn’t surpass a certain threshold. On the other hand, you will have to earn a certain amount of income before you are required to file taxes. This income depends on the type, your age and filing status.
If you find out that you aren’t required to file a tax return because you met the criteria, it is important you still go ahead and file because you could be eligible for a tax refund. Let’s take a closer look at who needs to worry about filing a tax return.
Who Has to File a Tax Return?
Not everyone has to file a tax return. However, before you conclude that you are a part of the “exempted” individuals, ensure you do your homework and know the full details (You don’t want to make wrong assumptions, especially when the IRS is involved).
Your annual income and status will determine if you are to worry about filing taxes or not. I also forgot to mention that the IRS has threshold requirements similar to tax brackets. What does this mean? It simply means that if your total annual income is above the threshold for your age, including your filing status, you are required to file a tax return. However, if the reverse is the case, you can breath with ease. You have nothing to worry about (regarding taxes of course).
For instance, if you are single (your filing status), under 65, and your total annual income was at least $12,200, you are required to file a return. However, if your gross income was less than $12,200, you are not required to file a tax return.
Does Everybody Have to File a Tax Return?
Taxes are compulsory fees levied on income earners or business owners and enforced by government bodies. While the definition of a tax remains valid, it doesn’t apply to everyone. This means that not all have to file taxes.
You may not have to file a tax return if your income is below the IRS threshold. However, it is advised that you go ahead and file a tax return if you wish to claim a refundable tax credit or a refund for withheld income tax.
Federal Filing Requirements Chart for Most Tax Payers:
| If your filing status is: | AND at the end of 2019 you were… | THEN file a return if yiur gross income was at least… |
| Single | Under 65 | $12.200 |
| Single | 65 or older | $13.850 |
| Head of household | Under 65 | $18.350 |
| Head of household | 65 or older | $20.000 |
| Married, filing jointly | Under 65 (both sposes) | $24.400 |
| Married, filing jointly | 65 or older (one spouse) | $25.700 |
| Married, filing jointly | 65 or older (both sposes) | $27.000 |
| Married, filing separately | Any age | $5 |
| Married, filing separately | Under 65 | $24.400 |
| Qualifying widow(er) | 65 or older | $25.700 |
When it comes to the question “is everyone required to file taxes?” it is important you note that filing requirements hinge on some important factors. These factors are your income, filing status, and your age. If peradventure your gross income for the year is more than the threshold for your age and filing status, congratulations, you are required to file a tax return. Remember, your gross income to include your wages, retirement benefits, investments returns, including earnings from a business or freelance.
What Is the Minimum Income to File Taxes?
When it comes to taxes, lots of questions are being asked daily. This is basically because tax filing is a serious process that deals with many requirements and rules. If you break a rule, the headlights of the IRS may be directed at your direction. That is something no one looks forward to. Among the array of questions, one of the most common is about the minimum income required to file a tax.
There is no specific minimum for filing a return. The amount differ based on the filing status and age of the individual. For instance, in the year 2019, the minimum for a single filing status below the age of 65 was $12,200. If you earn a salary that is below that threshold, you aren’t required to file taxes.
The table at the beginning of the article sheds more light into the IRS threshold for filing taxes. You can also refer to the IRS publication 501 if you need extra information.
While it is true that the IRS has 10 years to collect a tax debt, you mustn’t leverage on that statute of limitations if you can pay off what you owe.
Who Needs to File a U.S. Tax Return?
We are all aware that the U.S. government get a huge chunk of its revenue from taxes. This simply means that, if these taxes aren’t collected, there may be a shortage of revenue. For this reason, the IRS does its best to ensure that all U.S. citizens file their taxes. Although, based on the filing requirements released by Uncle Sam, not everyone is required to file a U.S tax return.
U.S citizens residing anywhere in the world with a gross income of more than $12,000 (or equivalent) is required to file a U.S tax return. This threshold differs for couples filing together or separately, while there are also lower thresholds for various categories of income, like freelance income.
Recall that your gross income includes income from sources like your salary or wages, interest, freelance income, investment returns, including all types of sources. Furthermore, the location where this income was earned plays no role in determining if you need to file a U.S tax return or not.
Comparative Filing Season Statistics (as of February 28, 2020):
| Cumulative Filing Season Data | 2019 Actual | 2020 Actual | % Change |
| Individual Income Tax Returns: | |||
| Total Returns Received (000s) | 59.223 | 59.305 | 0.1% |
| Paper Returns Received (000s) | 2.729 | 2.569 | -5.9% |
| E-Filed Returns Received (000s) | 56.494 | 56.736 | 0.4% |
| Practioner-Prepared (000s) | 27.017 | 26.410 | -2.2% |
| Home Computer (000s) | 29.477 | 30.326 | 2.9% |
| Free File (000s) (in the Home Computer total) | 1.251 | 1.531 | 22.4% |
| Fillable Forms (000s) (in the Home Computer total) | 93 | 81 | -12.9% |
| Percentage of Returns E-Filed | 95.4% | 95.7% | 0.3% |
| Refunds: | |||
| Total Number Issued (000s) | $46.416 | $45.552 | -1.9% |
| Total Dollars (in millions) | $142.395 | $139.593 | -2.0% |
| Average Dollars | $3.068 | $3.064 | -0.1% |
| Total Number of Direct Deposits | $43.241 | $42.636 | -1.4% |
| Total Direct Deposit Dollars (in millions) | $136.601 | $134.202 | -1.8% |
How Much Do You Have to Make to File Taxes?
The tax season has arrived, with its deadline by the corner. Arranging all your tax documents as fast as possible is very crucial. However, depending on your income and your tax filing strategy, there is something else you need to determine. Do you make adequate cash that requires you to file taxes?
The amount of money you need to make to file taxes depends on the method you adopt in filing a tax return. It varies for each filing status, be it single (no spouse or dependent), married filing together, married filing individually, or head of household.
Let’s take a closer look at each filing status mentioned above:
Single:
As a single mother and below the age of 65, you need to make $12,200 (minimum) to file taxes. However, if you are above the age of 65 and you plan on filing single, the minimum amount increases to $13,850.
Married and Filing Together:
In this case, the amount you have to make to file taxes depends on your ages (you and your husband/wife). If both couples are below 65, you need to make a minimum of $24,000 (double what an individual filing single will need). On the other hand, if both couples are 65 or above, you will have to make at least $27,000. If one of the couples is 65 or older, divide the difference, you will have to make $25,000 to file taxes.
Qualifying Widower:
A qualifying widower (one whose spouse died in the current tax year) with a dependent child, who can file as married filing jointly, and the age difference applies, will have to make $24,400 (if you’re below 65), and a minimum of $25,700 if above 65.
Married and Filing Individually:
Those in this category have to make just $5 to file a tax return.
Head of Household:
If you are a qualified “head of household” and you want to file as such, you will have to make $18,350 or excess under the age of 65 to file a tax return. On the other hand, if you are 65 or over 65, you will need to have a gross income of $20,000 to file a tax return.
Is It Illegal to Not File a Tax Return?
Here is one important question people ask. Unfortunately, several individuals lack the “real” answer to this question. Some go ahead and assume while others ask and get wrong answers.
It is illegal to not file a tax return. In fact, you should desist from the act (for those who are required to file) because it comes with very serious consequences. You may have probably heard stories of individuals who successfully swindled the IRS, but one thing you probably didn’t hear is that the IRS always catches up to individuals who failed to file their tax return.
Stories of individuals hiding their income tax is very prevalent in the U.S. and other countries. In fact, popular tax evader Irwin Schiff wrote a book on this act. However, thread with caution because books of that nature always fail to tell you that failing to file your taxes can be a huge mistake. One you might end of regretting!
When it comes to tax filing, there are wrong assumptions flying around. Some people believe that you will be penalized for filing late when due for a refund. In addition, some people also believe that you can pay estimated taxes whenever you want. Ensure you get your facts right before you believe anything, especially regarding taxes.
At What Age Do You No Longer Have to File Taxes?
There is this misconception that once you reach a certain age, you stop filing taxes. Well, that’s not always the case, even for seniors. One cannot blame the IRS because they are just doing their job. So, at what age do you no longer have to worry about filing taxes?
You are to file taxes irrespective of your age. In fact, reaching the retirement age doesn’t exempt you from paying taxes. Provided you still earn income above the threshold based on each filing status, you will have to pay taxes. Tax filing doesn’t end at any age. However, as a senior, if your income is from just your social security benefits, you are not required to file taxes.
Whether you pay income taxes when you get to a certain age depends on the nature and amount of salary you receive and not your age. But, regardless of your age, you are not required to pay taxes if you earned zero income during the tax year. Another thing that determines how much money you can make before you file a tax return is your filing status. If you file as single, the amount will be lesser than if you are married filing together.
Do You Have to File a Tax Return if Your Only Income Is Social Security?
Social security is a benefit program designed by the government to provide substitute income for certain individuals in the society. These individuals range from the disabled, old workers and their spouses, etc. Taxes, as we know, is a compulsory fee levied on individual’s income. With this in mind, does it mean you are to file taxes if you make a living from only social security?
Social security funds come from the government so it will be strange for the IRS to request for a portion from such benefits. Social security is not taxable only if it’s your sole income. This denotes that you may not need to file a tax return.
However, if you have other income aside from your social security, you could owe taxes on part of your benefits. To quickly calculate your tax liability, add one-half of your government benefits to your other earnings. While making this calculation, you have to consider any tax-exempt interest you have received, including exempts from earnings like bond interest, and foreign-earned salary.
Can You File Taxes if You Get Paid Under the Table?
Under the table income is simply an income you receive that isn’t documented or reported to the IRS by whoever is paying you. Though paying workers under the table is a crime, most employees use this tactic to escape taxes. Employers also enjoy these tactics because it means that they also don’t get to pay taxes on the income. If as an honest individual, your employer pays you under the table, do you still go ahead and file taxes?
Even if getting paid that way makes filing taxes harder, it is quite possible to file taxes on such income. All you have to do is:
- Calculate your gross income for the year
- Request for a W-2 or 1099 MISC from your employer
- File your cash income as miscellaneous income using form 1040, Schedule C
Remember, the W-2 or 1099 MISC is an important element in the filing process. If peradventure your employer refuses to hand the forms over to you, bring to their notice the consequences that come with failing to track and file. If your employer is the stubborn type, you may consider visiting the IRS to fill them in on what is happening, but I’ll advise that you meet with an accountant first to ensure that what’s happening is indeed illegal. Alternatively, you may also decide to keep your mouth shut and not cause trouble for yourself.
What Is a Simple Tax Return for Seniors?
You would agree that most seniors lack sharp senses like young adults. Some of them make certain mistakes when filing complex tax forms due to their old age, while others require help in filling them. This kind of makes things more unbearable for them, especially at a period when they are supposed to be living a carefree life. However, thanks to the simple tax return for seniors, these older men and women can finally smile.
The simple tax form for seniors is meant for individuals who are 65 or older. This form which is quite simple to read and fill makes the filing process easy for seniors. To get the form, you need to acquire the standard cut, and the form includes the higher standard cut for taxpayers within the ages of 65 and above.
In addition, the simple tax return for seniors is synonymous to the IRS form 1040-SR and also similar to the 1040-EZ in several ways. This form is easier for seniors to understand than the typical form 1040.
At What Age Do Seniors Stop Paying Property Taxes?
Just as the name implies, a property tax is simply a tax paid on real estate or other types of property. This type of tax poses as a major burden to retirees because as the value of homes skyrockets, their property tax follows suits. And how do you expect retirees to pay huge property taxes with the little income they receive? To handle this, tax authorities introduced the senior’s property tax exemption.
The least age for this exemption is generally between the ages of 61 to 65. While states such as New York, Texas and Massachusetts offer this exemption to seniors who are 65 or older, other states such as Washington offer this relief to only seniors who are 61. In Hampshire, you need to be 65 or older to be eligible for the exemption. However, your exemption will be increase as you get older.
The age differs for each state. In addition, some states also set income requirements. This denotes that if you earn too much, you may not be eligible for this exemption, or your exemption amount may be slashed.
