What Is the Minimum Income to File Taxes in 2020?

The Internal Revenue Service (IRS) sets minimum income levels that require filing a federal tax return. These thresholds vary based on filing status, age, and whether you can be claimed as a dependent. The rules for the 2020 tax year were designed to ensure that individuals earning below a certain amount were not burdened with filing.

2020 Gross Income Filing Thresholds

For the 2020 tax year, the requirement to file a federal income tax return was based on your gross income. Gross income includes all income you receive that is not tax-exempt, such as wages, dividends, capital gains, and business income, before any deductions are taken. The 2020 filing thresholds were directly tied to the standard deduction amount for that year, and the specific threshold that applied to you depended on your filing status and age.

The specific income thresholds were:

• Single and under age 65: $12,400
• Single and age 65 or older: $14,050
• Married filing jointly and both spouses under 65: $24,800
• Married filing jointly and one spouse 65 or older: $26,100
• Married filing jointly and both spouses 65 or older: $27,400
• Married filing separately (any age): $5
• Head of household and under age 65: $18,650
• Head of household and age 65 or older: $20,300
• Qualifying widow(er) and under age 65: $24,800

Filing Rules for Dependents in 2020

The filing requirements for individuals who can be claimed as a dependent on someone else’s tax return are distinct from the general income thresholds. These rules consider the type of income received—whether it was earned or unearned. Earned income includes wages and tips, while unearned income includes interest and dividends.

A dependent with only unearned income was required to file if that income exceeded $1,100 for the year. If the dependent had only earned income, such as from a job, the filing threshold was $12,400. For dependents with a mix of both earned and unearned income, they were required to file if their gross income was more than the larger of either $1,100 or their total earned income (up to $12,050) plus an additional $350.

Other Situations That Require Filing for 2020

Beyond the standard gross income thresholds, certain activities and financial situations triggered a mandatory filing requirement for the 2020 tax year. If you had net earnings from self-employment of at least $400, you were required to file a return to pay self-employment tax.

You also had to file a 2020 return if you owed any special taxes. This could include the Alternative Minimum Tax (AMT) or taxes on a Health Savings Account (HSA), Archer MSA, or Medicare Advantage MSA distribution.

Another situation involves the premium tax credit. If you or a family member were enrolled in a health insurance plan through the Health Insurance Marketplace and received advance payments of this credit, you were required to file. This filing reconciles the amount of the advance credit you received with the amount you were actually eligible for based on your final income for the year.

Why You Should File a 2020 Return Even if Not Required

Even if your income was below the minimum filing thresholds, it could be beneficial to file a 2020 tax return. Filing is the only way to get back any federal income tax withheld from your paychecks. If your Form W-2 shows federal tax withholdings but your income was too low to require filing, you are likely due a refund.

Filing a 2020 return was also the mechanism for claiming any missed stimulus payments, known as the Recovery Rebate Credit. Individuals who did not automatically receive the economic impact payments distributed in 2020 could only claim this money by filing a tax return.

Filing a return also allows you to claim other refundable tax credits. Refundable credits can provide you with a refund even if you do not owe any tax. Examples include the Earned Income Tax Credit (EITC) and the American Opportunity Tax Credit for educational expenses.