Who is required to file taxes?

Understanding Tax Filing Requirements

Filing taxes is a crucial responsibility for many individuals and entities, but not everyone is required to file a tax return. The obligation to file taxes depends on several factors, including income level, filing status, age, and specific circumstances.

Income Thresholds

The Internal Revenue Service (IRS) sets income thresholds that determine whether an individual must file a tax return. These thresholds vary based on filing status and age. For 2023, the general filing thresholds are:

• Single:
  • Under 65: $13,850
  • 65 or older: $15,700
• Married Filing Jointly:
  • Both spouses under 65: $27,700
  • One spouse 65 or older: $29,200
  • Both spouses 65 or older: $30,700
• Married Filing Separately: $5 (regardless of age)
• Head of Household:
  • Under 65: $20,800
  • 65 or older: $22,650

Self-Employed Individuals

If you're self-employed, you must file a tax return if your net earnings were $400 or more. This includes:

• Freelancers
• Independent contractors
• Gig economy workers
• Small business owners

Special Circumstances

Certain situations require individuals to file a tax return regardless of income level:

1. You owe special taxes, such as:

   • Alternative minimum tax
   • Household employment taxes
   • Social security and Medicare tax on unreported tip income

2. You received:

   • Health Savings Account (HSA) distributions
   • Advance payments of the Premium Tax Credit
   • Distribution from a retirement account
   • Unemployment benefits

Dependents

Dependents have different filing requirements. They must file if they have:

• Unearned income (such as dividends or interest) over $1,250
• Earned income over $13,850
• Gross income that is more than the larger of $1,150 or their earned income plus $400

Benefits of Filing

Even if you're not required to file, you might benefit from doing so if:

• You're eligible for refundable tax credits like:
  • Earned Income Tax Credit
  • Child Tax Credit
  • American Opportunity Credit
• Federal income tax was withheld from your paycheck
• You made estimated tax payments
• You want to start the statute of limitations for tax assessment

Note: State filing requirements may differ from federal requirements. Check with your state's tax authority for specific guidelines.

Getting Help

If you're unsure about your filing requirement, you can:

1. Use the IRS Interactive Tax Assistant
2. Consult a tax professional
3. Visit a local Volunteer Income Tax Assistance (VITA) site
4. Visit the IRS website
5. Use tax preparation software like TurboTax or H&R Block

Remember, tax laws change frequently, so it's essential to verify current requirements each tax year.