You might be surprised to learn that not everyone needs to file a federal tax return. The Internal Revenue Service (IRS) has specific rules based on gross income and tax filing status that determine whether you need to file. While you may not be required to file based on your income, you might still want to file to claim 🍰a refund.

Here’s what you need to know about tax filing requirements🍰 and the consequences of not filing.

Federal Filing Requirements

澳洲幸运5开奖号码历史查询:Gross income and tax filing status are the primary factors for determining whether or not you are required to file federal taxes. The💮re is no minimum age set for filing taxes, so tax returns are all primarily about income and tax status. But here are a few things to co🌄nsider:

Age Considerations for Seniors:
If you're 澳洲幸运5开奖号码历史查询:65 or older, you can use Form 1040-SR—a special tax form for seniors—which offers additional tax benefits.

Married Filing Separately:
If you're 澳洲幸运5开奖号码历史查询:married and filing separately, and earn more than $5, you must file a return, regardless of other income considerations.

Dependents:
There are specific rules for dependents (such as children or students), and whether they need to file a return depends on their age, income, and income type.

Self-Employed Individuals:
If you're self-employed and earn more than $400 in net income, you must file a tax return, even if your overall income falls below the threshold for other filing requirements.

Filing Thresholds

The IRS publishes a list of income thresholds each year that outlines when you are required to file taxes based on your filing status and age. For example, for 2024, a single filer under the age of 65 must file if their gross income is $14,600 or more. Married couples under 65 must file if their combined income is $29,200 or more. For 2023, it was $13,850 for those under 65 or $27,700 for couples married filing jointly.

Notes and update꧃s for⛄ future years can be found in and from the IRS.

Source: Internal Revenue Service

State Filing Requirements

The majority of U.S. states also collect income taxes, so it is important to know your state tax requirements as well. Moꦛst states generally require that you file a state tax return if you file a federal return.

• If you earned income in a state other than your primary residence, you may need to file a return in both your home state and the state where you worked.
• If you lived in multiple states during the year, you may need to file tax returns in each of those states. Specific requirements for each state can be found through .

Why File Taxes Even If You're Not Required?

Even if you don't meet the IRS income thresholds for filing, there are good reasons to consider filing your taxes.

Tax Refunds

Many tax filers who fall below the income threshold may receive a refund through their tax filing, which can make filing beneficial. 澳洲幸运5开奖号码历史查询:Tax refunds are available for W-2 employees and others who had tax withheld from their paychecks during the year. The government also offers a few tax credits for low-income individuals that may provide you with some money 🐬back at tax time.

If taxes are withheld from your payroll during the year and your gross income falls below the tax thresholds, you can be eligible to get that money back.

Tax Credits

Filing a tax return can also help you claim various tax credits that may increase your refund. Knowing the 澳洲幸运5开奖号码历史查询:tax credits you are eligible helps.

The 澳洲幸运5开奖号码历史查询:earned income credit (EIC) is the most popular tax credit for low-income earners. You must be between 25 and 65 to qualify. The EIC varies depending on your income, tax status, and dependents, with more dependents providing you with higher credit. For single filers with no children, the maximum credit is $649 for the 2024 tax year. For filers with three or more children, the maximum credit is $8,046 for the 2024 tax year

Some other credits to consider for low-income individuals include:

• 澳洲幸运5开奖号码历史查询:Child Tax Credit
• 澳洲幸运5开奖号码历史查询:Saver’s Tax Credit for retirement investing
• Child and Dependent Care Tax Credit
• Premium Credit under the Affordable Care Act
• 澳洲幸运5开奖号码历史查询:American Opportunity Credit (AOTC) for higher education
• 澳洲幸运5开奖号码历史查询:Lifetime Learning Credit (LLC) for higher education

You may also qualify for the Premiꦆum Tax Credit (for health insurance under the Affordable Care Act) or the Lifetime Learning Credit (for educational ༺expenses).

Penalties for Non-Filers

If your income is above the specified thresholds, you are expected to file and pay the necessary taxes to the government. The IRS can contact you if you have a substantial tax obligation and do not file. Generally, the IRS provides you with a clear notification of your obligations. Keep in mind that aꦡll unpaid taxes accrue penalties.

Here is how they are calculated:

• Late Filing Penalty: The IRS charges a 5% penalty for each month your return is late. his penalty can accumulate up to 25% of your unpaid taxes.
• Failure-to-Pay Penalty: If you don’t pay your taxes, you’ll incur a penalty. This is generally 0.5% of your unpaid taxes for each month the tax is unpaid.
• Minimum Penalty: If the return is more than 60 days late, the minimum late filing penalty is 100% of your unpaid taxes or a set dollar amount that increases each year, whichever is smaller. The last noted dollar amount by the IRS was $485.

Special Situations That Require Filing

In some cases, there may be add🤡itional consi🌜derations for annual tax filings. Below are some of the scenarios that may require a tax return, even if you fall below the threshold:

• You are a self-employed individual with more than $400 in earnings from self-employment during the year
• You owe an 澳洲幸运5开奖号码历史查询:excise tax (i.e., a penalty) on retirement plan assets, for example, for failing to take a 澳洲幸运5开奖号码历史查询:required minimum distribution (RMD)
• You owe 澳洲幸运5开奖号码历史查询:Social Security and Medicare tax on tips that you did not report to your employer

The Bottom Line

Understanding whether you need to file taxes depends on your income and filing status, bꦆut other factors such as self-employment income, age, and tax credits may also play a role.

Even if you're not required to file, it may still be beneficial to do so in order to claim refunds and credits. Always stay informed about your tax obligations, and consult a tax professional if you're unsure about your filing status or requirements.