Contributed by: KeriC, FreeTaxUSA Agent, TaxPro
Most individuals who have income will need to file a federal tax return. However, there are some circumstances where a tax return isn’t required.
Here are the top factors used when determining if you need to file a federal tax return:
- Age considerations. Your age at the end of the year influences the income thresholds for filing requirements. The age requirement for filing depends on your filing status and gross income.
- Filing status. Given that income thresholds differ based on filing status, it's crucial to consider one's filing status. There are five filing statuses: single, head of household, married filing jointly, married filing separate and qualifying surviving spouse.
- Gross income. Gross income includes all taxable income received as money, goods, property, services, income from foreign sources, and a gain from selling a primary residence even if some of that income could be excluded. You should determine if your total income exceeds the filing threshold.
The IRS may still require you to file a return, even if your income is below the gross income filing threshold if you answer yes to any of the following questions.
- Are you self-employed or do you have a side business with net self-employment income of $400 or more?
- Did you purchase marketplace health insurance?
- Did any of the following events happen with your retirement accounts?
- Took an early distribution from a retirement account
- Made an excess contribution
- Missed your required minimum distribution (RMD)
- Was there a distribution from a health or medical savings account that wasn’t for medical expenses?
- Do you owe additional taxes, such as:
- Alternative minimum tax
- Household employment taxes
- Repayment of the 2008 First-Time Homebuyer Credit
- Social Security or Medicare tax on tips not reported to your employer or your employer didn’t withhold taxes from
- Did you earn more than $108.28 from a tax-exempt church?
Are there benefits to filing a tax return if my gross income doesn’t require me to file?
If you make less than the gross income required to file, you may want to file a return if the following apply:
- You could be eligible for a refundable tax credit such as:
- Earned Income Tax Credit
- Child Tax Credit
- American Opportunity Tax Credit
- Premium Tax Credit
- If your paycheck had federal income tax withheld
- If you made estimated tax payments
For an overview of the filing requirements based on age, filing status and gross income, see IRS Publication 501.
If you are uncertain about needing to file a tax return, the IRS has a helpful interactive tool that can help you determine if you need to file: Do I need to file a tax return?
