How Much Money Do You Need to Make to File Taxes
Tax season is a well-known time of the year. For some, it’s almost like a holiday. They get a nice refund check, pay off some bills, buy some things they need and want, maybe even take a vacation. For others, it’s simply a stressful time. It’s spent gathering documents, filling out unending forms, and paying out even more money.
Thanks to tax time becoming so common among Americans, there are many that do not know that they are not even required to file. Others know they are not required but wonder if they should, thanks to the recent stimulus packages provided by the government.
The questions then are how much money do you need to make to file taxes, and are there any additional requirements? The information here outlines the answers to both of those questions and more.
Typically, Americans must meet certain income requirements before they are required to file taxes. These requirements vary according to your age, filing status, and other factors. These are listed below.
Single
Married, Filing Jointly
If you are married and filing jointly with your spouse, it is slightly more complicated as the ages of both spouses are a factor. The following are the income requirements according to age:
- Both spouses are under 65- $25,900
- One spouse is under 65, and the other is older than 65- $27,300
- Both spouses are 65 or older- $28,700
Married, Filing Separately
If you choose to file married, but separately, your income requirements are very low: $5. Yes, that’s right. You have to file once you make as little as $5 for the year.
Head of Household
If you are filing as head of household, there are different requirements. If you are under 65 and make $18,650 or more, you must file taxes. Likewise, if you are 65 or up and make $20,300, you are required to file.
Qualifying Widower
If you are a qualifying widow that has a dependent child, you have similar requirements to those who are married filing jointly. This makes sense as that is basically what qualifying widower status is- it means you still get to claim married, filing jointly provided you meet specific requirements. Therefore, you must file if you meet either of the following:
- You are under 65 and make at least $25,900
- You are 65 or up and make at least $27,300
What If I’m Someone’s Dependent?
If someone else can claim you as a dependent, you may still have to file your own taxes. It depends mostly on your level of income and whether you are single or married.
Single dependents
Dependents who are under 65 have to file taxes if they meet any of the following:
Your unearned income was more than $1,050.
Your earned income was more than $12,200.
Your gross income was more than $1,100, or your earned income was at least $11,850 on top of $350- whichever is larger.
over 65 or are blind must file if:
Your unearned income was more than $2,750.
Your earned income was over $13,850.
Your gross income was more than the $2,750 requirement, or earned income was at least $11,850 plus $2,000- whichever is larger.
If you are a dependent who is 65 or up, and you are blind, the requirements are a little higher. You must file if:
Your earned income was over $15,500.
Your unearned income was more than $4,400.
Your gross income was more than the $4,400, or your earned income is a minimum of $11,850 plus $3,650- whichever is larger.
Married dependents
Married dependents under 65 who are not blind must file if they meet any of the following:
You’re a married dependent under age 65 with:
Unearned income more than $1,100
Earned income more than $12,200
Gross income more than $1,100 or earned income up to $11,850 — plus $350
Gross income of at least $5, and you had a spouse who filed a separate return and itemized deductions (if married)
You’re a married dependent over age 65 with:
Unearned income more than $2,400, or $3,700 if over 65 and blind
Earned income more than $13,500, or $14,800 if over 65 and blind
Gross income of at least $5, and you had a spouse who filed a separate return and itemized deductions
Gross income more than the larger of
$2,400. or $3,700 if over 65 and blind
Your earned income (up to $11,850) plus $1,650, or $2,950 if over 65 and blind
You Might Also Have to File Taxes If:
Sometimes, your level of income does not matter. There are other conditions that- should you meet them- you have to file taxes even if your income does not meet the minimum requirements. Some of these include the following:
You are self-employed and had at least $400 in net earnings.
You have household employees that you need to pay taxes on.
There was an income of more than $108.28 from a church organization.
You earned tips that you did not report and need to pay Social Security or Medicare taxes on them.
You owe taxes on a health savings account, IRA, or a similar account.
These are just a few of the additional reasons one might have to file taxes, whether they meet the income requirements or not. Everyone’s tax situation is different, though. So if you are still uncertain, it is always best to speak to a professional.
There are penalties for failing to file if you are required to do so. Therefore, it’s imperative you do not leave it to chance.
Should I File Even If I Don’t Meet These Requirements?
Who wants to go through the trouble of filing their taxes if they don’t have to? I know that it may seem like a ridiculous thing to do, but there may be good reasons to do it anyway.
The biggest reason to file taxes is a potential refund, thanks to tax credits. Let’s just be real- everybody can benefit from a tax refund check. No matter how small or large it is, some extra cash in the pocket simply cannot hurt. And if you meet any of the following, there is a potential refund in your future.
Income taxes were withheld from your paychecks throughout the year.
You have children or dependents and qualify for the additional child tax credit. This $2,000 credit is available to parents who meet the necessary income and additional requirements for children under 16 years old.
You are considered a low- or moderate-income worker and qualify for the Earned Income Tax Credit (EIC or EITC). The amount of the EITC depends directly on your income and how many children you have, but it is typically anywhere from $510 to $6,318. Any of that, of course, is a nice chunk of change. By the way, you do not have to have children to qualify.
You qualify for the American Opportunity Education Credit. This credit is for undergraduate students and parents and can get you up to a $2,500 credit.
You can receive a credit for health coverage or for federal tax on fuels.
You made estimated tax payments out of pocket or with the previous year’s tax refund.
Don't Stress over Taxes! We Help You Find the Best Offer.
Deciding and Preparing to File
If you have decided to file- whether you are required to or not- there is another important decision you need to make. Should you use a professional tax service or file them yourself?
There are many things to take into account during this decision, but one of the most important is the price. Professional tax services can charge hundreds- or even thousands- depending on the amount of your refund.
On the other hand, you can file your federal tax online for free. And, with the right tax software, you can do it with ease. You can take a look at our preferred professional tax services and tax software to find the best option for you.
Conclusion
Hopefully, the information here has answered your questions, “How much money do you need to make to file taxes?” and “Are there any additional requirements with tax filing?” Additionally, we hope that these answers helped you become more confident in whether you should file.
If you still have questions about filing your taxes- or about your finances, in general- we have an incredible resource for you. We have an entire financial mall created just for you. It’s full of information, videos, and other resources that deal with taxes, building wealth, insurance, loans, credit, and everything in between.
The Goalry Mall is available for anyone who wishes to take control of their financial situation, so register for your account today. With the right education, plan, and motivation, you will be surprised to see how quickly you can improve your finances and live a more secure life.