Typically around this time of year, many people begin wondering whether they need to file a federal income tax return.
When in doubt, I say go ahead and file your return.
But I know you guys want numbers, so I’m going to give them to you.
The minimum income to file taxes isn’t one number that I can spit out to you so easy.
There are a series of questions you should answer to help you come up with the minimum income amount that applies to you. Let’s start with the IRS questionnaire found on their “do you need to file” page.
The questions are designed to help you determine whether you need to file a federal tax return and whether you need to adjust your Form W-4 to eliminate withholding.
The IRS has stated that they want to help eliminate wasted time and money from returns that are filed that shouldn’t be. I say you take them up on that offer and work through the questions. Here are the first set of questions (head’s up: this is a slightly outdated form, but the number below are up to date):
If you answer yes to any of those questions then you should file a federal tax return regardless of your earnings.
Right away you should see that if you have self-employment income of more than $400 then you need to file.
If you answer no to all of the questions, then you might be able to avoid filing.
The next question you need to ask is whether someone else can claim you as a dependent. If you are not a dependent AND you are under 65 years of age, then you won’t need to file taxes unless you income exceeds (numbers updated for tax year 2015):
- $10,300 (single filer),
- $13,250 (head of household),
- $20,600 (married filing jointly),
- $16,600 (qualifying widower with dependent child).
Note that if you are filing married filing separately, you will need to file a return.
Note that for those filers 65 and older, the income numbers are slightly higher for some filing types. See the IRS questionnaire for more info on this.
If you are a dependent then you follow a different set of rules. It’s sort of complicated, but basically if you are a dependent who is under 65 who has unearned income (i.e. interest income) over $950, or earned income (i.e. wages) over $5,800, or if your combined earned and unearned income exceeds $5,800, then you need to file.
If your income is in the lower range and you are just not sure what to do, you can always start to complete a federal tax return through a free filing service like the one TurboTax offers. Their software should help you determine if filing is even necessary.
Always, I repeat, always file if you had taxes withheld on your paycheck or if you suspect you might qualify for a refundable tax credit, like the child tax credit, education credits, etc.
What about you? Did you earn enough to file?