Do I need to file a tax return?

You may wonder: “Do I have to file taxes this year?” Determining whether or not you need to file a tax return can be complicated. In fact, having an income doesn’t automatically mean you need to file. Read on to learn more about whether or not you need to file a tax return.

Did you know? Americans miss out on an average refund of about $2,900 by not filing.  Get a free Second Look at H&R Block to make sure you’ve filed and claimed your maximum refund for the past 3 years.

“Do I need to file a tax return?”

You may be required to file a tax return depending on your age, income received, and filing status. Here are some common cases where you need to file a tax return:

Scenario 1: You’re an employee

Here’s where it is simple. If you have regular employment—meaning you work for another person or business and receive a W-2—and no one else can claim you on a federal tax return, you can use this chart to determine whether you need to file a return. Here’s how:

1. Find your filing status and age bracket.
2. If your gross income is below the number on the right, you are not required to file a tax return. If it is more than that number, you do need to file a tax return.

Scenario 2: You’re self-employed

The rules are different if you work for yourself or if you work as a contractor (meaning you get a Form 1099 instead of a W-2). You must file a tax return if your net earnings from self-employment were $400 or more.

Consider this scenario: You may be 36 years old, single and make less than $15,750 per year in regular employment income, but if you have a side business that nets you more than $399, you will need to file a federal tax return.

Scenario 3: You owe the government

Even if you don’t meet any of the income criteria, you may need to file if you owe a special recapture tax to the government. Among other things, that would include:

• Repaying the homebuyer’s tax credit
• Taxes on tips you didn’t report to your employer
• Household employment taxes, such as for a nanny, although you may not need to file a full tax return

“Do I need to file a tax return in special cases?”

Tax-favored accounts

You will need to file a federal return if you received distributions from your Health Savings Account or other medical savings accounts. If you took an early distribution from a qualified retirement plan or made excess contributions, you may also need to file to pay this tax but may not be required to file a full return.

Minister or clergy wages

You will also need to file if you had wages of $108.28 or more from a church or qualified religious organization that is exempt from payroll taxes.

You are a dependent

One of the most complicated issues to sort through when it comes to whether you need to file a return is the issue of dependency. Let’s say you are a college student and receive most of your financial support from your parents. Just because they claim you as a dependent on their tax return doesn’t mean you are automatically off the hook to filing a return.

You will need to file your own federal tax return if:

You are single, under age 65, are not blind, and are claimed as a dependent on another taxpayer’s return and:

• Your unearned income (money from dividends or interest) is more than $1,250, or
• Your earned income (like wages) is more than $13,850, or
• Your gross income is more than the larger of:
  • 1) $1,250 or
  • 2) earned income up to $13,450 plus $400.

You are married, under age 65, are not blind and are claimed as a dependent on another taxpayer’s return and:

• Your unearned income (money from dividends or interest) is more than $1,250, or
• Your earned income (like wages) is more than $27,700, or
• Your gross income was at least $5 and your spouse files a separate return and itemizes deductions, or
• Your gross income is more than the larger of 1) $1,250 or 2) earned income up to $27,300 plus $400.

The criteria is different if you are blind or over the age of 65. Learn more in our post covering how much you have to make to file taxes.

 Related: Help for determining who can be claimed as a dependent.

“Why do I have to file taxes?”

Federal tax payments provide revenue to state, federal, and local governments and fund essential government services. The major categories include:

• Education
• Medicare
• Social security
• Social services
• Defense and national security
• Transportation and infrastructure
• Science and medical research

Get help filing your taxes with H&R Block

You can rely on the expertise of H&R Block to get your maximum tax refund. Whether you choose to file online or want to file your taxes with a tax professional, we’re here for you.