If I Only Made $300, Do I Have to File Taxes?
Learn whether you need to file taxes on $300 in income by considering federal thresholds, dependency status, self-employment rules, and potential refunds.
Filing taxes may seem unnecessary if you only made $300, but certain situations could still require it. Factors like self-employment income, dependent status, and potential tax credits might influence whether filing is required or beneficial. Even if you’re not legally obligated to file, doing so could result in a refund if taxes were withheld or credits apply.
Federal Filing Thresholds
The IRS sets annual income thresholds to determine who must file a tax return. These limits vary based on filing status, age, and income type. In 2024, a single filer under 65 generally isn’t required to file unless their gross income exceeds $14,600. For married couples filing jointly, the threshold is $29,200 if both spouses are under 65. These amounts adjust yearly for inflation.
Social Security benefits typically aren’t taxable unless combined with other income that pushes total earnings above a certain level. If a retiree’s only income is Social Security, they likely don’t need to file. However, if they also have wages, investment earnings, or other taxable income, a portion of their Social Security benefits may become taxable.
Some individuals must file even if their income is below the standard threshold. Those who received advance premium tax credits for health insurance under the Affordable Care Act must file to reconcile those credits. Similarly, individuals who owe specific taxes, such as early withdrawal penalties on retirement accounts, are required to submit a return.
Dependent Status Factors
Being claimed as a dependent on someone else’s tax return affects filing requirements. The IRS has different income thresholds for dependents based on the type of income earned.
For 2024, a dependent with only earned income—such as wages from a part-time job—must file if they make more than $14,600. However, the filing threshold for unearned income, such as interest or dividends, is much lower at $1,250. If a dependent has both earned and unearned income, they must file if their total income exceeds the larger of $1,250 or their earned income plus $400.
Even if a dependent’s income is below these limits, filing may still be worthwhile if taxes were withheld from their paycheck. Many part-time jobs automatically deduct federal and state taxes, and the only way to receive a refund of those amounts is to file a return.
Self-Employment Earnings
Self-employment income follows different tax rules than traditional wages. Independent contractors, freelancers, and sole proprietors are considered self-employed, regardless of earnings.
One key factor is the self-employment tax, which covers Social Security and Medicare. Unlike employees, who split these taxes with their employer, self-employed individuals pay the full 15.3%. In 2024, earning more than $400 from self-employment requires filing a tax return.
Self-employed individuals can deduct business expenses to lower taxable income. Eligible deductions include costs for equipment, home office use, internet and phone services, and business-related travel. Keeping detailed records is essential, as deductions can significantly reduce tax liability. For example, someone earning $1,000 from freelance graphic design but spending $300 on software and advertising would only be taxed on $700 of net earnings.
Potential Refund Options
Filing a tax return isn’t always about paying the IRS—it can also result in a refund. If federal income taxes were withheld from a paycheck, filing is the only way to reclaim those amounts. Reviewing Form W-2 from an employer is necessary to check for withholdings; Box 2 shows the total federal tax withheld. If no taxes were withheld, there won’t be a refund from this source.
Tax credits can also generate refunds, even for those with little or no tax liability. The Earned Income Tax Credit (EITC) benefits low-income workers by providing a refundable credit based on income, filing status, and the number of qualifying children. In 2024, individuals without children can qualify if their earned income is below $17,640, with a maximum credit of $632. Those with children can receive significantly more. Unlike deductions, which reduce taxable income, refundable credits can result in a refund even if no taxes were paid.
State Income Tax Obligations
Federal tax requirements are only part of the equation—state income tax rules also determine whether filing is necessary. Each state sets its own filing thresholds, and some have lower income limits than the federal government.
Nine states—Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, and New Hampshire—do not impose a traditional income tax, though New Hampshire taxes interest and dividend income. In states that do levy income taxes, filing thresholds vary. For example, in California, a single filer under 65 must file if their gross income exceeds $5,663 in 2024, significantly lower than the federal threshold. Other states, like New York and Illinois, generally require a return if a federal return is filed.
Some states offer tax credits or refunds that make filing beneficial even if not required. California’s Earned Income Tax Credit (CalEITC) allows low-income workers to receive a state refund even if they owe no tax. Similarly, states like Oregon and Maryland provide refundable credits that can result in money back. Checking state-specific rules ensures no potential refunds are overlooked.