Not everyone is required to file taxes, but most Americans must and likely will submit a return.
Of the 176.2 million individuals and married couples who could file a return in 2020, about 144.5 million of them did, according to the nonpartisan Washington think tank the Tax Policy Center.
Whether you need to file depends mostly on your income, filing status and age.
In special situations, you may have to file regardless of your income. If you have net earnings of at least $400 from self-employment, for example, you’re required to file taxes. If you earn at least that much, you pay self-employment tax.
But even if you’re not required to file a return, you may want to. That way, you can claim tax credits and overpayments that could result in money being returned to you.
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Confused? We’ll explain it all so you can stay within the law or even benefit.
Important things:Are you ready to file your taxes? Here's everything you need to know to file taxes in 2023.
To determine if you’re one of the millions who have to file a return, start with three things: Your gross income -- total income before taxes and adjustments -- and your age and filing status.
Filing status means whether you’re single; married filing jointly or separately; head of household; or a widow(er).
Depending on your age and filing status, the IRS has minimum income thresholds that determine whether you must file a tax return. Here are the breakdowns:
Single filing status:
Married filing jointly:
Married filing separately:
Head of household:
Qualifying widow(er) with dependent child:
If you to file:Is it better to pay someone to do your taxes or do them yourself? We'll help you decide.
Stay focused:Tax season 2023 officially started: Here are key deadlines to keep in mind
People with “special situations” may have to file a tax return regardless of income. Some of these situations include:
1. You owe any special taxes, such as:
2. You (or your spouse, if filing jointly) bought health insurance from a state or federal marketplace or received health savings account distributions.
3. You had net earnings from self-employment of at least $400.
4. You had wages of $108.28 or more from a church or qualified church-controlled organization that’s exempt from employer Social Security and Medicare taxes.
Note: If you can be claimed as a dependent on someone else’s tax return, your tax filing requirements are different.
If you’re still stumped, use the IRS’ interactive tool to help you determine if you need to file a tax return.
If you think you can get money back, yes. Consider filing if any of the following apply:
Even if you don't have a refund due, the IRS recommends filing a tax return if you received a 1099-B, which has information about securities or property involved in a transaction handled by a broker, to avoid getting a notice from the agency.
Medora Lee is a money, markets and personal finance reporter at USA TODAY. You can reach her at [email protected] and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.
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