What is the minimum amount of income required to file taxes?
Not everyone is expected to file a tax return. The choice between whether or not you are expected to file a tax return depends on your age, filing status, the type and the amount of income you make.
So, how much do I have to make to file taxes? You ask; we are here to answer your question.
The amount required to file taxes is dependent on various factors. Thus, you need to know a few things first. First, you need to know the standard deduction. If your income within the past year was less than the standard deduction, you typically don’t need to file a tax return.
The standard deductions prescribed by the IRS are as follows:
A single filing = $12,200
Head of household = $18,350
Married filing separately = $12,200
Married filing jointly = $24,400
If you earn less than the standard deduction then your taxable income will be zero. Therefore, you will not have to file any tax return because you do not owe any taxes.
Next, you need to know what the income filing thresholds are. For the lowest tax bracket in 2019, this is what it looks like:
At 10 percent,
– Singles and married filing separately is up to $9,700
– Married filing jointly is up to $19,400
– Head of Households is $13,850
To further understand how tax brackets work with the standard deduction, let us say a 27-year-old person earned $8,500 income in the last year, which means their total taxable income is less than zero which means they don’t have any income that can actually be taxed by the IRS.
Next, you should ask yourself if you’re a dependant. Parents can claim their children as dependents up until the age of 19. If they continue their education, parents can claim their children as dependents up until the age of 24.
If you are a single dependant under the age of 65 then your tax filing situation is dependent on 3 things, namely: Earned income, Unearned income, and Gross income.
You’ll also want to check on social security benefits. If you are receiving social security benefits, it is not recognized as taxable income, therefore, it cannot be taxed.
This situation changes if you’re married to someone who is 65 years and older. In this case, if you have a combined income of more than #27,000, then you must file your tax return.
Some situations that will require you to file your tax return include;
– if you self employed and earn at least $400
– If you paid on a 1099-MISC form
– If you bought health insurance from a state or federal market place
If you’re still unsure whether you should file a tax return, it’s best you talk to a tax professional. We can help you by looking into your unique case and telling you what you need to do to avoid potential filing mistakes and penalties.
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