Not everyone is required to file taxes, but most Americans are likely to file.
Of the 176.2 million singles and married couples who can file a tax return in 2020, about 144.5 million have filed a tax return, according to the nonpartisan Washington-based Tax Policy Center. Whether you need to file your taxes depends mostly on your income, filing status, and age. In special cases, you may have to file a tax return regardless of your income. For example, if you have net earnings of at least $400 from self-employment, you are required to file taxes.
Having said that, even if you are not required to file a tax return, you may want to file a claim to claim tax credits and overpayments that could result in getting paid. returned to you.
It may sound confusing, but we’ll explain it all here so you can stay within the law or even reap some benefits for doing some unrequited work.
important things:Are you ready to file your taxes? Here’s everything you need to know to file taxes in 2023.
Who is legally required to file a tax return?
To determine if you’re among the millions who have to file a return, start with your gross income, which is your total income before taxes, adjustments, age, and filing status. Filing status is if you are single or married filing jointly or separately, head of household, or widow(er).
Depending on your age and filing status, the IRS has income minimums that determine whether or not you must file a tax return. Below are the malfunctions:
Single filing status:
- $12,950 if under the age of 65
- $14,700 if age 65 or older
Presentation of married couples:
- $25,900 if both spouses are under the age of 65
- $27,300 if either spouse is under 65 and age 65 or older
- $28,700 if both spouses are 65 or older
Married Filing Separately:
Head of the family:
- $19,400 if under the age of 65
- $21,150 if age 65 or older
Eligible widow with dependent child:
- $25,900 if under the age of 65
- $27,300 if age 65 or older
If you submit:Is it better to pay someone to do your taxes or do them yourself? We’ll help you decide.
Stay focused:Tax season 2023 has officially begun: Here are the key deadlines to keep in mind
People with “special situations” may have to file a tax return, regardless of income. Some of these cases include:
1. You owe any special taxes, such as:
- Alternative minimum tax, which is generally for very high income taxpayers.
- Additional tax on a qualified plan, including an Individual Retirement Arrangement (IRA), or other preferred tax account.
- Social Security or Medicare tax on tips that you did not report to your employer or on wages you received from an employer that did not withhold these taxes.
- Uncollected Social Security, Medicare, or railroad retirement tax on tips you reported to your employer or group life insurance and additional taxes on health savings accounts.
- Domestic workers taxes.
- Redemption taxes, which are paid to the federal government for interest on the use of tax-exempt mortgage securities, were used for the financing.
2. You (or your spouse, if you co-enroll) purchased health insurance from the state or federal market or received health savings account distributions.
3. You had net earnings from self-employment of at least $400.
4. You had wages of $108.28 or more from a qualifying church or church-controlled organization that are exempt from your employer’s Social Security and Medicare taxes.
NB: If you can be claimed as dependent on someone else’s tax return, your tax filing requirements are different.
If you are still confused, take it Interactive IRS tool To help you decide if you need to file a tax return.
Do I have to file a tax return even if I am not required to?
If you think you can get a refund, yes. Consider applying if any of the following apply:
- Income tax has been withheld from your salary. You can recover this amount.
- I overpaid. For example, if you made estimated tax payments or any of the overpayments for last year applied to this year’s estimated tax, you may be owed a refund.
- Earned Income Tax Credit (EITC). You may qualify for this refundable credit, which means that even if you don’t owe taxes, you can still get a refund. Depending on your income and how many children you have, low-income workers may qualify for an EITC from $510 to $6,318, but you don’t have to have children to be eligible for an EITC.
- Additional child tax credit. If you qualify, you can receive up to $1,500 of the $2,000 Child Tax Credit per child as a refund.
- American Opportunity Credit. If you qualify for this tax credit to help pay for post-high school education expenses, you can get an annual credit of up to $2,500 per eligible student and a 40% refund, or $1,000 if you don’t owe tax.
- Excellent tax credit. If you qualify, you can redeem this credit that helps eligible individuals and families cover health insurance premiums purchased through the health insurance marketplace.
Even without a refund, the IRS recommends that you file a tax return if you receive a 1099-B number, which contains information about the securities or property involved in a transaction handled by a broker, to avoid getting a notice from the IRS.
Medora Lee is USA TODAY’s money, markets and personal finance correspondent. You can contact her at mjlee@usatoday.com and sign up for the free Daily Money newsletter for personal financial advice and business news every Monday through Friday morning.