Home Blog How Much Do You Have To Make To File Taxes (Explained)

How Much Do You Have To Make To File Taxes (Explained)

Wondering how much you must make to file your taxes? 

Is there a threshold below which you are exempt?

What’s important to know?

Keep reading as we have gathered exactly the information that you need!

Let me explain to you how your income tax works once and for all!

Are you ready?

Let’s get started!

How Much Do You Need To Make To File Taxes

In the United States, most people are required to file taxes as they may have earned a certain amount of income during the year.

However, there are some people that may not have to file their taxes depending on their age and filing status.

According to the IRS, in the year 2021, you must file taxes if you are in the following tax status and have earned a minimum income:

StatusBelow 65 Years65 Years And Over
Single$12,550$14,250
Married, filing jointly$25,100 both spouses under 65$27,800 both spouses are 65 or older
$26,450 one spouse is under 65 and one is 65 or older
Head of household$18,800$20,500
Married, filing separately55
Qualifying widow(er)$25,100$26,450

Let’s break this down further.

Single Filing Status

If you are a single filer and you are below 65 years of age, you must file your income taxes if you earned more than $12,550 during the year.

If you are 65 and older, you’ll need to file taxes if you earned more than $14,250 in a given year.

Married Filing Status

Married couples may file jointly or separately.

If you’re a married couple filing jointly, then you must file your income taxes in the following situations:

  • If both spouses are below the age of 65 and have a total income over $25,100
  • If one spouse is 65 or over and the other one is below 65 and you have a total income over $26,450
  • If both spouses are 65 or older and have a total income of $27,800 or more

If you’re married and filing separately, no matter how hold you are, you must file your taxes if you earned more than $5 for the year (that’s right, $5).

Head of Household

The head of a household will need to file income taxes in the following situations:

  • If he or she is under the age of 65 and made more than $25,100
  • If he or she is 65 or older and heard more than $26,450

Qualifying Widow(er) With Dependent Child

A qualifying widow or widower with dependent child will have to file income taxes in the following situations:

  • Makes more than $25,100 in the year and is under 65
  • Makes more than $26,450 in the year and is 65 or older

Recommended article: What is your adjusted gross income

Tax Filing Obligations In Other Situations

So far, we’ve looked at your obligation to file taxes based on your age and income.

Although this situation applies to many taxpayers, there are other situations that will require a person to file his or her income taxes.

Here are other possible situations that you may be required to file your income taxes with the Internal Revenue Service:

  • You earned self-employment income over $400
  • You received health savings account distributions
  • You owe taxes on your Individual Retirement Account
  • You owe taxes on household employees
  • You must pay an alternative minimum tax
  • You contributed more than $108.28 to a church or church organization
  • You must pay the IRS recapture taxes
  • You owe Social Security or Medicare taxes
  • You received advance payments on health coverage tax credits
  • You benefited from advance payments of teh premium tax credit

Keep in mind that there may be other situations that will require you having to file your taxes.

It’s important that you consult with a tax specialist to see what applies to you.

You can also use the IRS online tool to assess if you have to file taxes or not.

Recommended article: Understanding self-employment taxes

Should You File Taxes If You’re Exempt

In some cases, you may not have the obligation to file your taxes depending on your age and how much you earned in the year.

For example, a married couple where both spouses are below the age of 65 will not have to file income taxes if they make less than $25,100 for the year.

However, not having the obligation to file taxes does not mean that you should not file your taxes.

You should consider filing your taxes even if you do not meet the income threshold if you’re expecting to receive a tax refund or you may be entitled to an earned income tax credit.

For example, if you had taxes withhold on your income during the year, you will want to file your taxes to get that money back.

Also, the earned income tax credit is a refundable tax credit that you may be entitled to.

You may also be entitled to receive additional child tax credits, American opportunity education credit, health coverage tax credit, premium tax credit, recovery rebate credit, credits for sick families, or credit for federal tax on fuels.

Recommended article: What is a tax credit

When Do You Need To File Taxes

Once a year, taxpayers are required to file their taxes so the IRS can assess how much tax liability they will have.

Employees will typically receive their W2 form from their employers no later than January 31st of the calendar year.

Then, you must have your income taxes filed by no later than April 15th of the year.

When you file your taxes, you must account for the income you earned in the prior year.

For example, if you are filing your taxes this year, you must report the income you earned from January 1st all the way to December 31st of last year.

Recommended article: Understanding the 1040 Form

Takeaways 

So there you have it folks!

How much do you have to make to file taxes?

This is a very common question that is asked by many.

In a nutshell, not everybody has to file an income tax return with the IRS every year.

In general, if your total income is below a certain threshold established by the IRS, then you may be exempt from having to file your taxes.

It’s important that you consider your gross income to determine if you are required to file your income tax return.

For instance, a taxpayer that is single, under the age of 65, without any special tax circumstances, and that earns less than $12,550 in the year is not required to file taxes (based on the 2021 thresholds).

You should assess if you earned a taxable income, ensure you are not subject to a special situation where you are required to file taxes, and that your income is below the set threshold based on your filing status and age.

Now that you know how much you need to make to file your income tax return, good luck with your research!

Tax refund
Earned income tax credit
Stimulus check
Tax holiday
Income tax bracket
Tax filing options
Recapture taxes
Self-employment income 
Alternative minimum tax
Form 1099-B
Author

Editorial Staffhttps://lawyer.zone
Hello Nation! I'm a lawyer and passionate about law. I've practiced law in a boutique law firm, worked in a multi-national organization and as in-house counsel. I've been around the block! On this blog, I provide you with golden nuggets of information about lawyers, attorneys, the law and legal theories. Enjoy!

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