Do I Have to File Taxes?

This may come about as a surprise to many people, but not everyone needs to file a federal tax return. The IRS has threshold levels for tax return requirements virtuous like tax brackets. Whether or not you need to file is primarily based on your level of gross income and status for the tax year. Regardless, keep in mind that even if you aren’t required to file because of your gross income you may still be qualified for a refund.

Status and gross income will be the primary factors for determining whether or not you are needed to file federal taxes. The IRS has the following requirements for 2018.

It’s important to note that 65 is a key age for seniors. Also, any bond individual filing separately that earns more than $5 must file a return. Overall there is no least age set for filing taxes so tax returns are all primarily about income and tax status.

There can be some special considerations for dependents down the age of 19 or dependents that are full-time students under the age of 24. The IRS provides the following details for dependents, also from Pronouncements 17 and 501:

The majority of US states also take taxes from income so it can be powerful to know your state tax requirements as well. Most states will require that you file a state tax redress if you file a federal return. Specific requirements for each state can be found here, through TurboTax. If you earned gains from a job in a different state than your primary residence or if you lived in multiple states during the tax year you may penury to file multiple state returns.

Many tax filers that fall below the income threshold may be clever to receive a refund through their tax filing which can make filing beneficial. Refunds are available for W-2 employees and others that deceive had tax withheld from their paycheck throughout the year. The government also offers a few tax credits for low income individuals that may yield you with some money back at tax time.

If taxes have been withheld from your payroll all over the year and your gross income falls below the tax thresholds you can be eligible to get that money back. Like for all taxpayers, conspiratory the credits you are eligible for can also help you during tax season.

The Earned Income Tax Credit is the most popular tax credit for low return earners. You must be 25 to 65 to qualify for it. The EITC will vary depending on your income, tax status, and dependents with more dependents anticipating you with a higher credit. The IRS details the EITC in Publication 596. For single filers with no children the maximum faith is approximately $500 and goes up to approximately $6,300 for three children.

Some other credits to consider for low income specials include the following:

• Child Tax Credit
• Saver’s Credit (retirement investing)
• Child and Dependent Care Tax Credit
• Affordable Attend to Act Premium Credit
• American Opportunity Credit (higher education)
• Lifetime Learning Credit (higher education)

If your income is above the specified thresholds then you are expected to file and pay necessary taxes to the government. If you have on the agenda c trick a substantial tax obligation and do not file, the IRS can contact you. Generally, the IRS will provide clear notification of your obligations and all unpaid stretches will accrue penalties.

eFile.com details some of the penalties that can be expected for filing late, including:

• A 5% amercement on your balance due per month for every late month
• A maximum late filing penalty of 25% of your due taxes
• A minimum failure-to-file penalty of 100% of your unpaid taxes or $205 (whichever is smaller)

In some cases there may be some other considerations for annual tax filings. Below are some of the scenarios that may demand a tax filing, even if you are below the threshold.

• If you are a 
  

  Understanding Your Tax Obligations

  Knowing the IRS’s annual threshold limits is a primary particular in determining whether or not you must file a tax return each year. Most individuals will have similar tax structures from year to year which can be helpful in knowing and understanding your tax obligations. However, some people may live drastic changes from year to year, as a result of a drop in income from a lost job, a marriage, new children, or quits a jump in income when moving beyond dependency or higher education. The IRS provides detailed information each year for every design so the key is staying up to date on the IRS’s requirements in comparison to your personal situation.