How much do you have to make to file taxes?

While filing taxes is an annual event for many households, it may surprise you to learn that not everyone is required to file a tax return each year. In general, there are three primary factors that determine whether you need to file taxes: income, age and filing status. 

But there’s plenty more to it. And the rules can differ between federal and state taxes.

Key takeaways

• Whether you need to file taxes can depend on your age, income and filing status.
• Self-employed workers are typically required to file a tax return and pay self-employment taxes.
• Even when you don’t have to file taxes, there may be benefits to filing.

Typically the gross income requirements for taxpayers are different each year, and they vary by age and filing status. For example, for the 2021 tax year, if someone under 65 filing as a single taxpayer made at least $12,550, they had to file taxes. In the 2022 tax year, for that same age and filing status, the income threshold was $12,950.

If you’re wondering whether you need to file a federal tax return for the 2023 tax year, the following guidelines from the IRS might help:

There’s not a specific age for when you have to file taxes. It mostly has to do with income. But kids don’t generally file a tax return while they are listed as dependents—unless they meet the qualifying income status. According to the IRS, a dependent is either a qualifying child or qualifying relative of the taxpayer.

There are certain rules for dependents regarding their: 

• Relationship to the taxpayer 
• Age 
• Residency
• Support from the taxpayer 

The IRS provides specifics for each requirement. For example, a potential dependent may meet the age requirement if they’re under 19 years old, under 24 years old and a full-time student, or any age with a permanent disability. 

If a dependent has a job and earns money, they could be required to file and pay taxes for income above a certain amount. This could include:

• Earned income from a job where they received a salary, hourly wages or tips
• Unearned income from things like investment dividends, investment interest or unemployment benefits

Not all dependents may be required to file, but it could be beneficial if they paid income taxes or qualify for tax credits, for example.

While self-employment can mean anything from a summer job mowing lawns to running a large company that you own, you’re usually responsible for paying taxes when you work for yourself, according to the IRS. This includes your income tax and self-employment tax toward Medicare and Social Security. You’ll usually pay these taxes quarterly.

If you’re unsure whether you’re considered self-employed, these few questions may help:

• Do you do business as an independent contractor or a sole proprietor?
• Do you have a side hustle?
• Are you in a working relationship with two or more individuals to do business or trade?

Self-employed workers typically have to pay taxes when they earn at least $400. However, even with a self-employment income of less than $400, other requirements may apply. So it’s a good idea to review Forms 1040 and 1040-SR or consult a tax professional.

What if you’re not required to file? Should you file anyway? Even if you don’t think you need to file, it’s a good idea to check to help avoid any penalties. And you could qualify for tax credits that may result in a refund. Or if your employer withheld federal taxes, you may be eligible for a refund. 

When you file a tax return—even if you don’t need to—you give the IRS your current information, including where to send money due to you.

If you have children, you may be eligible for the child tax credit. Qualifying children can also include other relatives, like a stepsister, nephew, half brother or grandchild.

To ensure you get any money owed to you, you’ll need to file a tax return, even when you may not be required to do so. The tax credit is typically up to $2,000 for qualifying children.

To be eligible, according to the IRS, a child must:

• Be under the age of 17 at the end of the tax year
• Have a Social Security number (SSN) that’s valid for employment
• Be claimed as a dependent on your tax returns

The earned income tax credit (EITC) is a federal tax credit for low- to moderate-income families and workers.

Qualifications for this tax credit include:

• Earned income below the maximum adjusted gross income (AGI) for your filing status and family size
• 2023 investment income under $11,000
• Being a U.S. citizen or resident alien living in the U.S. for the year
• Having a valid SSN

If you qualify, it may increase your refund or reduce the amount of taxes you owe. To check your qualification status, visit the IRS EITC assistant. There you will enter general information and details for your filing status, AGI and qualifying children.

It’s important to file taxes and pay what you owe so you don’t face penalties from the IRS. 

To help avoid penalties, you can:

• File a complete and accurate tax return before the deadline
• Pay any owed taxes on time
• Submit full payments properly 

The IRS will notify you of any penalties by mail, sending a letter or notice that explains the penalty, the amount due and any other important information.

Filing taxes is something many Americans do every year. Whether you have to file taxes can depend on different factors. If you have questions, consider reaching out to a tax professional.

By understanding how taxes work, you can better anticipate when your income meets the requirements for filing taxes, how you might save on taxes and what you need to do to avoid any penalties. And if you’re looking forward to getting a tax refund, you can learn more about when to expect it.