Minimum income to file taxes in 2023: Not everyone needs to file
Not everyone is required to file taxes, but most Americans are and likely will file taxes.
Of the 176.2 million individuals and married couples who could file a tax return in 2020, about 144.5 million of them did, according to nonpartisan Washington think tank the Tax Policy Center. Whether you need to file your taxes depends mostly on your income, filing status and age. In special situations, you may have to file a tax return regardless of your income, though. For example, if you have net earnings of at least $400 from self-employment, you’re required to file taxes.
Having said that, even if you’re not required to file a tax return, you may want to file to claim tax credits and overpayments that could result in money being returned to you.
This may sound confusing, but we’ll explain it all here so you can stay within the law or even reap some benefits for putting in a little unrequired work.
Important things: Are you ready to file your taxes? Here's everything you need to know to file taxes in 2023.
What is the minimum income to file taxes in 2023?
To determine if you’re one of the millions who have to file a return, start with your gross income, which is total income before taxes and adjustments, and your age and filing status. Filing status refers to if 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:
$12,950 if younger than 65
$14,700 if 65 or older
Married filing jointly:
$25,900 if both spouses are younger than 65
$27,300 if one spouse is younger than 65 and one is 65 or older
$28,700 if both spouses are 65 or older
Married filing separately:
$5 for all ages
Head of household:
$19,400 if younger than 65
$21,150 if 65 or older
Qualifying widow(er) with dependent child:
$25,900 if younger than 65
$27,300 if 65 or older
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:
Alternative minimum tax, which is generally for very high income taxpayers.
Additional tax on a qualified plan, including an individual retirement account (IRA) or another tax-favored account.
Social Security or Medicare tax on tips you didn't report to your employer or on wages you received from an employer who didn't withhold these taxes.
Uncollected Social Security, Medicare or railroad retirement tax on tips you reported to your employer or on group-term life insurance and additional taxes on health savings accounts.
Household employment taxes.
Recapture taxes, which is paying back the federal government for benefits of using tax-exempt mortgage bonds for financing.
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.
Should I file a tax return even if I’m not required to?
If you think you can get money back, yes. Consider filing if any of the following apply:
You had income tax withheld from your paycheck. You can get a refund of that amount.
You overpaid. For example, if you made estimated tax payments or had any of your overpayment for last year applied to this year's estimated tax, you might be due money back.
Earned income tax credit (EITC). You may qualify for this refundable credit, meaning even if you do not owe taxes, you can still get a refund. Lower-income workers may be eligible for an EITC of $510 to $6,318, depending on income and number of children, but you don't need to have children to be eligible.
Additional child tax credit. If you qualify, you can receive up to $1,500 of the $2,000 child tax credit per child as a refund.
American opportunity credit. If you qualify for this tax credit to help pay for post-high school education expenses, you can get a maximum annual credit of $2,500 per eligible student and 40% or $1,000 could be refunded if you owe no tax.
Premium tax credit. If you qualify, you can get a refund on this credit that helps eligible individuals and families cover the premiums for their health insurance purchased through the health insurance marketplace.
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.
More of your 2022 tax season questions answered
Tax season 2023 officially started: Here are key deadlines to keep in mind
File your taxes early for a chance to double your refund money with Jackson Hewitt
1099, W-4, W-2, W-9, 1040: What are these forms used for when filing your taxes?
What are the 2022 US federal tax brackets? What are the new 2023 tax brackets? Answers here
2023 tax season guide for new parents: What to know about the Child Tax Credit, EITC and more
IRS may owe you from 2020 taxes. Here's why and what you need to do to find out if you're owed
What is OASDI tax on my paycheck? Here's why you and your employer pay this federal tax
Do you have to report crypto on taxes? Yes. Here's what you should know about form 8949
What is a 1098-E form? What you need to know about the student loan interest statement
Tax season 2023: What exactly is the mileage rate? There's more than one.
Is it better to pay someone to do your taxes or do them yourself? We'll help you decide.
What is income tax? What to know about how it works, different types and more
Is Social Security income taxable by the IRS? Here's what you might owe on your benefits
Companies can deduct full cost of business meals on 2022 tax returns
Who has to file a tax return: It's not necessary for everyone. Here are the rules.
What is capital gains tax in simple terms? A guide to 2023 rates, long-term vs. short-term
Best way to receive your 2023 tax refund? IRS says direct deposit. Here's how to do it.
What is FICA? How much you contribute to federal payroll taxes.
How much is the Child Tax Credit for 2023? Here's what you need to know about qualifying.
A 30% national sales tax? Abolishing the IRS? What the FairTax Act of 2023 would do.
The Inflation Reduction Act carves out an EV tax credit for 2023. Does Tesla qualify?
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.
This article originally appeared on USA TODAY: How much do you need to make to file taxes in 2023?