Not everyone has to file taxes, but most Americans do.
Of the 176.2 million individuals and couples who could file tax returns in 2020, about 144.5 million did, according to the Tax Policy Center, a nonpartisan Washington think tank. Whether or not you need to declare depends mainly on your income, filing status and age. However, in special circumstances, you may be required to file a tax return regardless of your income. For example, if you are self-employed and have at least $400 in net income, you must file your taxes.
That said, even if you don’t have to file a tax return, we recommend that you do so to claim tax credits or overpayments. came back to you
This may be confusing, but I’ll explain it all here so you can stay within the law or get some benefit from doing a little unnecessary work .
Important things:Are you ready to file your taxes? Here’s everything you need to know to file your taxes in 2023.
Who is legally required to file tax returns?
To determine if you are one of the millions of people who have to file a return, start with your gross income. This is your gross income before taxes and adjustments, your age, and your filing status. Your application status is whether you are single or married, jointly or individually applying, head of household, or widow.
Depending on your age and filing status, the IRS has minimum income thresholds that determine whether you must file a tax return. The breakdown is as follows.
Single filing status:
- $12,950 for under 65
- $14,700 for ages 65 and over
Married Joint Filing:
- $25,900 if both spouses are under 65
- $27,300 for one spouse under age 65 and one spouse over age 65
- $28,700 if both spouses are 65 or older
Another Filing Married:
Head of household:
- $19,400 for under 65
- $21,150 for ages 65 and over
Eligible widows with dependent children:
- $25,900 for under 65
- $27,300 for ages 65 and over
If you submit:Would you rather have someone else pay your taxes or pay your own taxes? We can help you decide.
Stay Focused:The 2023 tax season officially begins: Here are the key deadlines to keep in mind:
People with “special circumstances” may be required to file a tax return, regardless of income. These situations include:
1. You must pay special taxes such as:
- Alternate Minimum Tax. Typically for very high income taxpayers.
- Additional tax on eligible plans, including Individual Retirement Plans (IRAs), or other tax benefits account.
- Tips you didn’t report to your employer, or Social Security or Medicare taxes on wages you received from your employer who didn’t withhold these taxes.
- Uncollected Social Security, Medicare, or railroad retirement taxes are additional taxes on tips you report to your employer, or group term life insurance, and health savings accounts.
- household employment tax.
- The funding was used with collection taxes paying back to the federal government the profits from using tax-exempt mortgage bonds.
2. You (or your spouse, if jointly filing) purchased health insurance from the state or federal market or received a share of your health savings account.
3. Self-employed net income of $400 or more.
4. Received wages of $108.28 or more from a church or qualified church management organization that is exempt from the employer’s Social Security and Medicare taxes.
Note: If you can claim to be dependent on someone else’s tax return, the tax return requirements are different.
If you still have trouble, IRS interactive tools It helps you decide if you need to file a tax return.
Should I file a tax return even if I don’t need it?
If you think you can get your money back, yes. Please consider submitting if any of the following apply:
- Income tax was deducted from my salary. You can get a refund for that amount.
- you overpaid For example, if you made an estimated tax, or if an overpayment from last year was applied to this year’s estimated tax, you may get a refund.
- Earned Income Tax Credit (EITC). You may be eligible for this refundable credit. This means you can get a refund even if you are not obligated to pay taxes. Depending on your income and number of children, a low-income worker may qualify for her EITC of $510 to $6,318, but does not need to have children to be eligible for the EITC. is not.
- Additional child tax deduction. 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 your education after high school, you can get up to $2,500 in deductions per eligible student per year, up to 40% or 40% if you don’t owe taxes. $1,000 will be refunded.
- Premium tax deduction. If eligible, you can get reimbursed with this credit to help eligible individuals and families cover health insurance premiums purchased through the Health Insurance Marketplace.
To avoid notice from the IRS, even if there is no refund, the IRS will file your tax return if you receive a 1099-B containing information about securities or property related to trades processed by your broker. We recommend submitting.
Medora Lee is a money, markets and personal finance reporter for USA TODAY. You can contact her at email@example.com and subscribe to her free Daily Her Money newsletter where you can get personal her finance tips and news about her business every Monday through Friday morning.