Who has to file a tax return? In a nutshell, IRS tax filing requirements are triggered when your income exceeds a certain threshold each year. The exact amount differs with age and type of income; filing status also plays a part.
For instance, in 2009, anyone who made $3,650 or more and filed as Married Filing Separately was required to file a return. But for the same tax year, a single individual over 65 years old did not have to file unless income hit $10,750.
How to Tell if You Must File a Tax Return – Learn Who Has to File Taxes
The instructions for Forms 1040, 1040-A, and 1040-EZ explain who must file tax returns in any given year. IRS Publication 501 (which is revised each year) also covers the annual requirements.
Do You Have to File Taxes if You're Low Income, Unemployed, or Due a Refund?
Tax return filing requirements vary by person. Whether you are single or married and with or without children makes a difference, as does the type of income you received during the year. Here are answers to commonly asked questions regarding tax filing requirements:
Do you have to file taxes if you don’t work? Answer: Maybe.
If you don’t work because you lost your job, you will likely have to file a return. Any income you earned before you were laid off is taxable as long as you exceed minimum filing requirements; furthermore, unemployment is generally taxable (see the last bullet below).
If you don’t work because you are retired, then odds are you receive some sort of retirement income. Some types of retirement income are taxable. A competent tax advisor will be able to tell you for sure one way or another.
If you simply do not work for compensation, have no other income streams, and have no other reason to file a return, such as to claim a specific tax break, then you likely do not have to file a tax return.
Do you have to file taxes if you don’t owe anything? Answer: Maybe.
If you don’t owe anything because you don’t have any income to report, then the answer is likely no. But if you don’t owe anything because you are due a refund, the answer is yes. You must file a tax return in order to claim your refund.
Do you have to file taxes if you get Social Security? Answer: Maybe.
Some Social Security benefits can be excluded from taxable income. You should receive Social Security Benefit Statement, Form SSA-1099, to help guide you in this regard.
Do you have to file taxes if you make under a certain amount? Answer: Maybe.
Those with extremely low incomes will not owe taxes, but many refundable tax benefits are available to this income group. A refundable tax benefit is one that will be paid to you even if you owe no money to offset it. To claim such benefits, you must file a federal return.
Do you have to file taxes for unemployment? Answer: Probably.
Unbeknownst to many Americans, unemployment compensation is subject to taxation except when specific relief if granted. You should receive a Form 1099-G to aid in this reporting.
Minimum Tax Filing Requirements for Individuals – IRS Income Tax Rules
The reasons to file or not to file a tax return are too numerous to be covered in a single article. While this article does not address all of the potential scenarios taxpayers may face, it does address some of the more common questions related to the requirement to file income tax returns with the IRS.
As you can see by all of the ‘maybe’ answers above, the requirement to file a tax return really depends on an individual’s specific circumstances. If you’re really unsure or have an especially tricky situation, it’s best to consult a qualified tax advisor.
For more information, review the appropriate current year tax return instructions once they are available (new ones are typically published in December) and/or access the current version of Publication 501 from the IRS website (available in the Forms and Publications section).
Related articles:
- How to Extend Form 1040
- IRS Schedule A – Itemized Deductions
- New IRS Tax Preparer Requirements
- Tax Refund Check Cashing
- When Are Taxes Due?
Lena Gott - Lena Gott is a Certified Public Accountant who gives practical financial advice to her readers.
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