Not everyone is required to file taxes, but most Americans are and likely will be.
Of the 176.2 million individuals and couples eligible to file taxes in 2020, about 144.5 million of them filed a tax return, according to the Washington think tank Tax Policy Center. Whether you need to pay taxes depends a lot on your income, filing status and age. In some cases, you may have to file a tax return regardless of your income. For example, if you have an income of at least $400 from self-employment, you must pay taxes.
Having said that, even if you don’t have to file a tax return, you can file tax claims and overpayments that can result in money. back to you.
It can be confusing, but we’ll explain it all here so you can stay within the law or make a profit by putting in a little unnecessary work.
Important things:Are you ready to file your taxes? Here’s everything you need to know about paying taxes in 2023.
Who is legally required to file a tax return?
To determine if you’re one of the millions who must file a tax return, start with your income, which is your total income before taxes and adjustments, your age and filing status. . Filing status is whether you are single or married, married or separated, head of household, or widowed.
Depending on your age and filing status, the IRS has a minimum income limit that determines whether you must file a tax return. Here are the breakdowns:
Single Sign Status:
- $12,950 if under 65
- $14,700 if age 65 or older
Joint wedding announcement:
- $25,900 if the spouse is under 65 years of age
- $27,300 if one spouse is under 65 and the other is 65 or older
- $28,700 if both spouses are 65 or older
Separate lawsuits:
Head of household:
- $19,400 if under 65
- $21,150 if age 65 or older
Widows with children:
- $25,900 if under 65
- $27,300 if age 65 or older
If you want to write:Is it better to pay someone to do your taxes or do them yourself? We will help you decide.
Stay focused:The 2023 tax season has officially begun: Here are the key deadlines to keep in mind
People with “special circumstances” may have to file taxes, regardless of income. Some of these situations include:
1. You need special taxes, such as:
- Minimum tax, which is usually for high tax payers is very high.
- Additional taxes on qualified plans, including Individual Retirement Agreements (IRAs), or other qualified accounts.
- Social Security or Medicare taxes on tips you didn’t report to your employer or wages you received from an employer that didn’t withhold those taxes.
- Uncollected Social Security, Medicare, or pension taxes on tips you report to your employer or on group life insurance and health savings account surcharges.
- Household employment tax.
- Tax recapture, which paid the federal government for the privilege of using tax-free mortgage bonds was used as financing.
2. You (or your spouse, if filing jointly) purchased health insurance through the state or federal marketplaces or received a health savings account share.
3. You have earned self-employment income of at least $400.
4. You received a salary of $108.28 or more from a church or a qualified church-controlled organization that is exempt from Social Security and Medicare taxes.
Note: if you can be said to be dependent on someone else’s documents, the tax requirements are different.
If you’re still confused, use the IRS’s interactive tool to help you figure out if you need to file a tax return.
Should I file a tax return even though I don’t have to?
If you think you can get the money back, yes. Consider installation if any of the following apply:
- You received income tax on your salary. You can get that money back.
- You paid a lot. For example, if you made an estimated tax payment or applied more to this year’s estimated tax than you paid last year, you may receive a refund.
- Earned Income Tax Credit (EITC). You may be eligible for this refundable credit, which means that even if you don’t pay taxes, you can still get a refund. Depending on your income and how many children you have, low-income workers may receive an EITC of $510 to $6,318, but you don’t have to have children to receive an EITC.
- Additional income tax for children. If you qualify, you can get up to $1,500 of the $2,000 child credit per child in rebates.
- American opportunity credit. If you qualify for this tax credit to pay for your high school education expenses, you can get an annual credit of at least $2,500 per qualifying student and 40% or $1,000 is refundable if you don’t pay. you are taxed.
- Payment of premium tax. If you qualify, you can get a refund for this credit that helps qualified individuals and families pay the premiums for health insurance purchased through the health insurance marketplace.
Even if there is no refund, the IRS advises you to file a tax return if you received a 1099-B, which contains information about insurance or assets involved in a broker’s transaction, to avoid notices from the IRS.
Medora Lee is USA TODAY’s fundraiser, markets and special fundraiser. You can reach him at [email protected] and sign up for his free Daily Money newsletter for personal financial tips and business news every Monday through Friday morning.
