How Do You Know if You Have to File Taxes

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Does Everyone Need to File an Income Tax Return?

Updated for Revenue enhancement Year 2021 • Feb 17, 2022 x:22 AM

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OVERVIEW

Not anybody is required to file an income taxation return each year. By and large, if your total income for the year doesn't exceed certain thresholds, then you don't need to file a federal tax return. The amount of income that you can earn earlier you lot are required to file a tax return likewise depends on the type of income, your age and your filing status.

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Key Takeaways

• If your income is less than your standard deduction, you lot generally don't need to file a return (provided yous don't have a blazon of income that requires you to file a return for other reasons, such equally self-employment income).

• In most cases, if you simply receive Social Security benefits, yous won't need to file a revenue enhancement render.

• If yous receive Social Security benefits and besides receive revenue enhancement-exempt income, the taxation-exempt income may cause your Social Security benefits to be taxable.

• Taxpayers who are claimed as a dependent on someone'due south revenue enhancement return must file a taxation return when their earned income is more than their standard deduction, or, for certain children, when their unearned income is greater than $1,100.

Consider your gross income thresholds

Most taxpayers are eligible to take the standard deduction. The standard tax deduction amounts that y'all're eligible for are primarily determined by your age and filing status. These amounts are gear up by the government before the tax filing flavor and generally increase for inflation each year.

The standard deduction, along with other available deductions, reduces your income to determine how much of your income is taxable. As long equally you lot don't have a type of income that requires you to file a return for other reasons, similar cocky-employment income, by and large you lot don't need to file a return as long as your income is less than your standard deduction.

For example, in 2021, yous don't need to file a tax return if all of the following are truthful for you:

• Under age 65
• Single
• Don't have whatsoever special circumstances that require you to file (like cocky-employment income)
• Earn less than $12,550 (which is the 2021 standard deduction for a single taxpayer)

What if I only receive Social Security benefits?

In about cases, if you only receive Social Security benefits you wouldn't have any taxable income and wouldn't need to file a revenue enhancement return.

One catch with Social Security benefits is if you are married but file a separate tax return from your spouse who you lot lived with during the year.  Then you will ever take to include at to the lowest degree some of your Social Security benefits in your taxable income to see if it is greater than your standard deduction.

When Social Security benefits may exist taxable

When determining whether you need to file a render and you receive Social Security benefits, you need to consider tax-exempt income considering it tin cause your benefits to be taxable even if you lot don't have whatever other taxable income.

Here's an instance of where you may need to file, even with tax-exempt income:

• You are under age 65 and receive $xxx,000 in Social Security benefits, only also receive another $31,000 in tax-exempt interest. $xiv,700 of your Social Security benefits will be considered taxable income.
• This is greater than your standard deduction ($12,550 for a single taxpayer in 2021) and you lot would demand to file a tax render.

To effigy out if your Social Security benefits are taxable:

• Add one-half of the Social Security income to all other income, including tax-exempt interest.
• Then compare that amount to the base amount for your filing status.
• If the full is more than than the base amount, some of your benefits may be taxable.

TurboTax tin can assistance you estimate if yous'll need to file a revenue enhancement return and what income will be taxable.

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TurboTax Tip: If y'all take had federal taxes withheld from your paycheck, you might desire to file a return even when you are not required to, and so you lot can receive your tax refund.

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Income thresholds for taxpayers 65 and older are higher

If y'all are at least 65 years old, yous get an increase in your standard deduction. You also get an increased standard deduction if:

• You are blind
• Or your spouse is also at least 65
• Or if your spouse is blind

The largest standard deduction would exist for a married couple that are both blind and both over 65 years old.

Having a larger standard deduction can allow you to have more income than someone under age 65 and still not have to file a render.   TurboTax can aid you judge if you'll demand to file a tax return and what income will exist taxable.

When a dependent (child or adult) may need to file a taxation render

Taxpayers who are claimed equally a dependent on someone's taxation return are subject to different IRS filing requirements, regardless of whether they are children or adults. A taxation return is necessary when their earned income is more their standard deduction.

The standard deduction for unmarried dependents who are nether age 65 and non bullheaded is the greater of:

• $1,100 in 2021
• Or the sum of $350 + the person's earned income, upward to the standard deduction for an unclaimed single taxpayer which is $12,550 in 2021.

A dependent'south income can be "unearned" when information technology comes from sources such as dividends and involvement. When a dependent'south unearned income is greater than $one,100 in 2021, the dependent must file a tax return.

When you may want to submit a taxation return to claim a taxation refund

With all the higher up beingness said, there are years when you lot might not be required to file a tax return just may want to. If y'all have federal taxes withheld from your paycheck, the only way you tin receive a tax refund when also much was withheld is if you file a tax return.

• For case, if you are a single taxpayer who earns $2,500 during the twelvemonth, with $300 withheld for federal revenue enhancement, then you are entitled to a refund for the entire $300 since you earned less than the standard deduction.
• The IRS doesn't automatically effect refunds without a tax return, and then if you lot want to claim whatsoever tax refund due to yous, and then you lot should file one.

Remember, with TurboTax, we'll ask yous simple questions about your life and help you fill out all the right tax forms. With TurboTax you lot can be confident your taxes are done right, from simple to complex tax returns, no affair what your situation.

All yous need to know is yourself

Answer uncomplicated questions about your life and TurboTax Free Edition will take intendance of the remainder.

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The above commodity is intended to provide generalized fiscal information designed to educate a broad segment of the public; it does non give personalized tax, investment, legal, or other business and professional person advice. Earlier taking any action, you should always seek the help of a professional person who knows your detail situation for communication on taxes, your investments, the law, or any other business and professional matters that impact you and/or your business organization.

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