Filing an income tax return might feel like a yearly obligation but it's not always necessary. Some people don't have to file a tax return every year. It may not be required if you don’t owe the 澳洲幸运5开奖号码历史查询:Internal Revenue Service (IRS) and the IRS doesn’t owཧe you. But how do you know if you're exempt?

When You Have to File

The IRS typically doesn’t need a tax return from you if your income is below the taxable threshold for the year. Your threshold is equal to the standard deduction for yꦐour filing status. You would have to💙 earn more than this amount to have any taxable income after you claim the deduction and subtract the applicable amount. The IRS revises these thresholds each year to keep pace with inflation.

• Single taxpayers under age 65 don't have to file if their gross income was below $14,600 in the 2024 tax year, increasing to $15,000 in 2025.
• Married couples filing jointly and who are both under 65 can skip filing if their joint income is less than $29,200 in the 2024 tax year, increasing to $30,000 in 2025.
• Head of household filers under 65 can avoid filing if their gross income is under $21,900 in the 2024 tax year, increasing to $22,500 in 2025.

Failing to file could cause you to miss out on tax credits that might put money back in your pocket, however, even if you fall below these thresholds. The IRS provides a to help you figure it out if you have any doubt about whether you have to file.

Your Taxable Income

Your taxable income includes all the money you’ve earned whether through wages, investments, or other sources.

• You'll receive a W-2 from your employer detailing your earnings if you're employed.
• You might receive a 澳洲幸运5开奖号码历史查询:1099 form that outlines your income if you’re a gig worker or an independent contractor.
• You'll also receive a 1099 form if you received Social Security payments during the tax year.

You must file to document your earnings and pay any taxes due on them if you're self-employed. It's taxable income if you sporadically make money selling items on eBay or Etsy and make more than $400 in a year.

Your 澳洲幸运5开奖号码历史查询:gross income figure reflects all sources of money you receive. It's income if you get an interest payment from a savings account, earn a profit by selling stock, or earn 澳洲幸运5开奖号码历史查询:dividends from stocks or bonds. It may be taxable if you win some money in a state lottery.

Other Situations That Require Filing

Other situat🌌ions will reꦕquire you to file a tax return even if your income is below the taxable limit.

• Selling a home: You may have to file to report the sale and deduct related expenses if you sold a property during the year. This could be capital gains.
• Retirement account distributions: You'll have to file if you took distributions or made excess contributions to a 澳洲幸运5开奖号码历史查询:retirement account.
• Tips and side jobs: You're obligated to report tips even if they're under the reporting threshold.
• Other large transactions: Filing ensures that you meet any tax obligations if you made significant financial transactions like selling significant assets.
  

When in Doubt, File

There are benefits to filing even if you don't have to do so. Filing a return could open the door to claiming tax credits such as:

• 澳洲幸运5开奖号码历史查询:Earned Income Credit (EITC)
• 澳洲幸运5开奖号码历史查询:Child and Dependent Care Credit
• 澳洲幸运5开奖号码历史查询:Education Credits
• Savers Credit

These credits can reduce your tax liability or even result in a refund. Filing a return may yield a refund that exceeds the amount of tax they paid for people with low income.

The Bottom Line

You don’t always have to file an income tax return if your income is below certain levels but filing could still benefit you by unlocking 澳洲幸运5开奖号码历史查询:tax credits that result in a refund. It’s always a good idea to consult a tax professional to ensure that you're maximizing any potential tax benefits available to you before deciding whether to file. You'll also want to make sure that you're not overlooking a tax issue that would require that you file a return.