What Is the Minimum Income to File Taxes in 2022?

Determining whether you need to file a federal income tax return depends on your gross income, your filing status, and your age. These elements work together to establish a minimum income threshold that dictates your filing obligation.

Gross Income Filing Thresholds

Your requirement to file a tax return is tied to your gross income, which includes all income you receive that is not tax-exempt. This encompasses wages, salaries, tips, income from a business, and gains from selling property. This figure is calculated before applying any deductions.

For the 2024 tax year, a single individual under the age of 65 is required to file if their gross income is at least $14,600. This threshold increases to $16,450 for single individuals aged 65 or older. The different thresholds acknowledge the larger standard deduction available to older taxpayers.

Couples who are married and file a joint return have a combined gross income threshold of $29,200 if both spouses are under 65. If one spouse is 65 or older, the limit rises to $30,750, and if both spouses are 65 or older, it increases further to $32,300.

Other filing statuses have unique thresholds. A person filing as Head of Household must file if their gross income is $21,900 or more if under 65. For a Head of Household aged 65 or older, the threshold is $23,750.

A Qualifying Surviving Spouse under 65 has a threshold of $29,200, which increases to $30,750 if they are 65 or older. Those who are Married Filing Separately must file if their gross income is just $5, regardless of their age.

Filing Rules for Dependents

The filing requirements for individuals who can be claimed as a dependent on someone else’s tax return are different from the standard thresholds. These rules are based on the type of income they received: earned income from a job, and unearned income from investments.

For the 2024 tax year, a dependent is required to file a tax return if their unearned income exceeded $1,300. A dependent also has a filing requirement if their earned income was more than $14,600. These rules are designed to ensure that income is properly reported and taxed, even if the recipient is a minor or a student supported by a parent.

The situation becomes more complex when a dependent has both earned and unearned income. In this scenario, a dependent must file if their total gross income was more than the larger of two amounts: either $1,300, or their total earned income (up to $14,150) plus $450.

Other Situations That Require Filing

Even if your gross income falls below the standard filing thresholds, certain circumstances can still obligate you to file a tax return. These rules often relate to particular types of income or taxes that require special reporting to the IRS to avoid penalties.

You are also required to file a return in the following situations:

• You had net earnings from self-employment of $400 or more.
• You owe special taxes, such as the Alternative Minimum Tax (AMT).
• You received distributions from a Health Savings Account (HSA), Archer MSA, or Medicare Advantage MSA.
• You received advance payments of the premium tax credit to help pay for health insurance through the Health Insurance Marketplace.
• You earned $108.28 or more in wages from a church or qualified church-controlled organization that is exempt from paying employer Social Security and Medicare taxes.

Why You Should File Even if Not Required

Even when the law does not require you to file a tax return, it can often be in your financial interest to do so. Filing a return is the only way to get back money that you are owed. Many people who are not obligated to file miss out on receiving a refund simply because they do not complete the necessary paperwork.

The most common reason to file voluntarily is to claim a refund of withheld income tax. If you had an employer who withheld federal income tax from your paychecks during the year, you must file a tax return to have that money returned to you.

Filing is also necessary to claim valuable refundable tax credits. Refundable credits are beneficial because you can receive them as a refund even if you have no tax liability. These can include the Earned Income Tax Credit (EITC), the Child Tax Credit, and the American Opportunity Tax Credit for education expenses.

If you made estimated tax payments during the year, you should file a return. This is common for self-employed individuals or those with other sources of income not subject to withholding. Filing allows you to reconcile the estimated payments you made with your actual tax liability for the year and receive a refund for any overpayment.