When are we required to file our taxes?
Filing taxes can feel confusing, especially when you are unsure if you need to file at all. Many people wonder about the specific situations that require submitting a tax return. Understanding when you must file your taxes helps you avoid penalties and ensures you stay compliant with tax laws. This post explains the key factors that determine your filing requirements, with clear examples to guide you.
Who needs to file a tax return?
The requirement to file taxes depends mainly on your income, filing status, age, and other specific circumstances. The government sets income thresholds each year, and if your earnings exceed these limits, you must file a tax return.
Income thresholds by filing status
Here are some general income thresholds for the most common filing statuses (these numbers can vary by tax year and location):
Single filer under 65: Must file if income is more than $12,950
Single filer 65 or older: Must file if income is more than $14,700
Married filing jointly under 65 (both spouses): Must file if combined income is more than $25,900
Married filing jointly with one spouse 65 or older: Must file if combined income is more than $27,300
Head of household under 65: Must file if income is more than $19,400
These thresholds include all sources of income such as wages, self-employment earnings, interest, dividends, and other taxable income.
Special cases that require filing
Even if your income is below the threshold, you might still need to file a tax return if:
You owe any special taxes, such as self-employment tax or alternative minimum tax.
You received advance payments of the premium tax credit for health insurance.
You earned at least $400 from self-employment.
You had wages of $108.28 or more from a church or qualified church-controlled organization exempt from employer Social Security and Medicare taxes.
You want to claim a refund for withheld taxes or refundable credits like the Earned Income Tax Credit.
When do you have to file taxes if you are self-employed?
Self-employed individuals have different rules. If you earn $400 or more in net earnings from self-employment, you must file a tax return regardless of your total income. This is because self-employed people are responsible for paying both the employee and employer portions of Social Security and Medicare taxes.
Examples for self-employed filers
A freelance graphic designer who earned $350 from a side project and $100 from selling crafts must file because total self-employment income is $450.
A part-time tutor who earned $300 from tutoring and $200 from a part-time job must file because self-employment income alone exceeds $400.
Deadlines for filing taxes
The deadline to file your federal tax return is usually April 15 of the following year. If April 15 falls on a weekend or holiday, the deadline shifts to the next business day. Filing late without an extension can lead to penalties and interest on any taxes owed.
Extensions and late filing
You can request an extension to file your tax return, which gives you an additional six months (until October 15) to submit your paperwork. However, an extension does not delay the payment of any taxes due. You should estimate and pay any owed taxes by the original deadline to avoid penalties.
Filing taxes for dependents and minors
Dependents, such as children or elderly parents, may also need to file taxes if they have earned or unearned income above certain limits. For example, a child who earned more than $1,250 in unearned income (like dividends or interest) or more than $12,950 in earned income must file a return.
Example for dependents
A high school student who worked a summer job and earned $5,000 must file a tax return.
A college student who received $2,000 in dividends from investments must file even if they had no earned income.
What happens if you don’t file when required?
Failing to file a tax return when required can lead to penalties, interest charges, and even legal action in severe cases. The IRS may also file a substitute return on your behalf, which usually does not include deductions or credits you might qualify for, resulting in a higher tax bill.
Penalties for not filing
Failure-to-file penalty: 5% of the unpaid taxes for each month the return is late, up to 25%.
Failure-to-pay penalty: 0.5% of unpaid taxes for each month after the due date.
Interest on unpaid taxes accrues daily.
Filing even a late return is better than not filing at all, as it reduces penalties and starts the clock on any statute of limitations for audits.
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