Understanding the Basics of Tax Filing
When it comes to filing taxes, one of the most common questions people ask is, “How much money do I have to make to file taxes?” The answer to this question can vary depending on several factors, including your filing status, age, and whether you are self-employed or employed by someone else.
Filing Status
Your filing status plays a significant role in determining whether you need to file taxes and how much money you need to make. There are five filing statuses: single, married filing jointly, married filing separately, head of household, and qualifying widow(er) with dependent child. Each status has different income thresholds for filing taxes.
| Filing Status | Minimum Income Threshold for Filing Taxes |
|---|---|
| Single | $12,950 |
| Married Filing Jointly | $25,900 |
| Married Filing Separately | $5 |
| Head of Household | $19,400 |
| Qualifying Widow(er) with Dependent Child | $25,900 |
Age and Tax Filing
Your age also affects whether you need to file taxes and how much money you need to make. If you are under 65 years old and not claimed as a dependent on someone else’s tax return, you generally need to file taxes if your income is above the minimum threshold for your filing status. However, if you are 65 or older, you may be able to file taxes even if your income is below the minimum threshold.
Self-Employment and Tax Filing
Self-employed individuals must file taxes regardless of their income level. This is because self-employment income is subject to self-employment tax, which covers Social Security and Medicare taxes. The minimum income threshold for self-employment tax is $400, but you must file taxes even if your net income is below this amount.
Dependents and Tax Filing
Dependents can affect your tax filing requirements and the amount of money you need to make. If you are claimed as a dependent on someone else’s tax return, you may not need to file taxes unless your income exceeds a certain threshold. For example, if you are claimed as a dependent by a parent, you generally need to file taxes if your income is above $12,950.
Other Factors to Consider
Several other factors can influence whether you need to file taxes and how much money you need to make. These include:
-
Whether you had any tax withheld from your income
-
Whether you qualify for any tax credits or deductions
-
Whether you received a refund on your previous year’s tax return
Conclusion
Understanding how much money you need to make to file taxes can be complex, but it’s essential to ensure you comply with tax regulations. By considering your filing status, age, self-employment status, dependents, and other factors, you can determine whether you need to file taxes and how much money you need to make. Always consult a tax professional or the IRS website for the most accurate and up-to-date information.