How Much Money Do You Have to Make to File Taxes?
Filing a tax return isn't always required. Learn the rules that determine your obligation and why you may want to file even when you don't have to.
The United States employs an income-based system for federal tax filing, meaning not every individual is obligated to submit a tax return to the Internal Revenue Service (IRS). The requirement to file is determined by a specific set of criteria based on factors such as income, filing status, and age.
Gross Income Filing Thresholds
The primary factor in determining a filing requirement is gross income. The IRS defines gross income as all income you receive in the form of money, goods, property, and services that is not exempt from tax, including income from sources outside the United States. For the 2024 tax year, the specific income thresholds that trigger a filing requirement are directly linked to the standard deduction amount for each category. The thresholds are higher for those 65 and older to account for an additional standard deduction amount.
- Single: The threshold is $14,600 for those under age 65 and $16,550 for those age 65 or older.
- Head of Household: The threshold is $21,900 for those under age 65 and $23,850 for those age 65 or older.
- Married Filing Jointly: The threshold is $29,200 if both spouses are under 65, $30,750 if one spouse is 65 or older, and $32,300 if both are 65 or older.
- Qualifying Surviving Spouse: The threshold is $29,200 for those under age 65 and $30,750 for those age 65 or older.
- Married Filing Separately: A return is required if gross income is $5, regardless of age.
Special Filing Requirements
Certain situations require filing a tax return even if your gross income falls below the standard thresholds. These special requirements ensure that specific types of taxes are paid and certain financial situations are reported to the IRS.
If you have net earnings from self-employment of at least $400, you are required to file a tax return. This rule applies regardless of your total gross income to ensure self-employment taxes, which cover Social Security and Medicare contributions, are paid.
You must also file if you owe any special taxes, such as the alternative minimum tax or household employment taxes. Filing is also required if you received advance payments of the Premium Tax Credit for health insurance through the Health Insurance Marketplace, as you must reconcile the amount you received.
When You Should File Even If Not Required
Even if your income is below the filing threshold, it can be financially advantageous to file a return. The most common reason is to receive a refund of taxes that were withheld from your paychecks during the year.
Filing a return is also the only way to claim refundable tax credits for which you may be eligible. Refundable credits can result in a tax refund even if you do not owe any income tax. Key examples include the Earned Income Tax Credit (EITC), the Child Tax Credit (CTC), and the American Opportunity Tax Credit (AOTC) for education expenses.
State Tax Filing Considerations
Federal and state tax systems operate independently. The requirements for filing a federal income tax return do not determine your obligation to file a state tax return, as each state has its own distinct tax laws and income thresholds.
Therefore, even if you are not required to file a federal return, you might still have a state filing requirement. To ensure compliance, you must consult the specific rules for the state where you reside or earn income by visiting your state’s department of revenue website.