Under what circumstances is a person required to file a tax return? (2024)

Under what circ*mstances is a person required to file a tax return?

Most U.S. citizens or permanent residents who work in the U.S. have to file a tax return. Generally, you need to file if: Your gross income is over the filing requirement. You have over $400 in net earnings from self-employment (side jobs or other independent work)

What are the factors that determine if a person has to file a tax return?

In most cases, income, filing status and age determine if a taxpayer must file a tax return. Other rules may apply if the taxpayer is self-employed or if they are a dependent of another person. For example, if a taxpayer is single and younger than age 65, they must file if their income was at least $12,000.

Who is legally required to file a tax return quizlet?

In the United States, both businesses and individuals pay income taxes and must file income tax returns each year.

Why would a taxpayer file a tax return if not required to do so?

Why would a taxpayer file a tax return if not required to do so? If a taxpayer's income does not exceed a certain amount, then he or she is not required to file a tax return. However, if a taxpayer paid taxes during the year, he or she would need to file a return in order to claim and receive a refund.

How much can you make and not have to file taxes?

Who is required to file an income tax return with the IRS?

What are the circ*mstances when they should file even if they do not have to?

What determines if an individual must file a tax return quizlet?

What determines if an individual must file a tax​ return? Net Investment Income Tax. Is an individual required to file a tax return if he or she owes no​ tax? Individuals who owe no tax because of deductions or other reasons must still file a return if they have gross income in excess of the filing requirement amounts.

Under what circ*mstances might a taxpayer who does not meet the federal filing requirement want to file a federal return anyway?

Even if you don't meet the filing threshold, you may still have to file taxes if you have other types of income. For example, you may need to file if you earned self-employment income or income from interest or dividends. In most cases, if you only receive Social Security benefits, you won't need to file a tax return.

Who is not required to file a return?

The minimum income amount depends on your filing status and age. In 2023, for example, the minimum for Single filing status if under age 65 is $13,850. If your income is below that threshold, you generally do not need to file a federal tax return.

Why might someone want to file a tax return even if they dont meet the minimum income requirement?

It's perfectly legal to file a tax return even if your income falls below the IRS minimum requirement to file. If you qualify for certain tax credits but owe no tax, you might be able to claim the excess tax credit as a refund when you file your return.

Who is responsible for filing taxes?

The U.S. income tax system is built on the idea of voluntary compliance. This means that taxpayers are responsible for declaring all of their income, calculating their tax liability correctly, and filing a tax return on time. The IRS depends upon honest reporting.

What are reasons people don't file taxes?

Emotional or financial reasons may cause a person to not file. Or it could simply be due to procrastination. Unfortunately failing to file a return creates additional problems.

Can you refuse to file taxes?

Taxpayers may have to pay a penalty if they're required to file a return but fail to do so. If they willfully failed to file a return, they may also be subject to additional fines and possible criminal prosecution.

What happens if you refuse to file taxes?

If penalties and interest aren't motivating enough and you outright refuse to file taxes, the IRS can enforce tax liens against your property or even pursue civil or criminal litigation against you until you pay.

At what age is Social Security no longer taxed?

Social Security can potentially be subject to tax regardless of your age. While you may have heard at some point that Social Security is no longer taxable after 70 or some other age, this isn't the case. In reality, Social Security is taxed at any age if your income exceeds a certain level.

Does Social Security count as income?

You report the taxable portion of your social security benefits on line 6b of Form 1040 or Form 1040-SR. Your benefits may be taxable if the total of (1) one-half of your benefits, plus (2) all of your other income, including tax-exempt interest, is greater than the base amount for your filing status.

How much can a 70 year old earn without paying taxes?

Taxes aren't determined by age, so you will never age out of paying taxes. Basically, if you're 65 or older, you have to file a return for tax year 2023 (which is due in 2024) if your gross income is $15,700 or higher.

Who is exempt from federal income tax?

Who Does Not Have to Pay Taxes? Generally, you don't have to pay taxes if your income is less than the standard deduction, you have a certain number of dependents, working abroad and are below the required thresholds, or are a qualifying non-profit organization.

How much can you make without filing taxes 2024?

You probably have to file a tax return if you were under 65 in 2023 and your gross income was at least $13,850 as a single filer or $27,700 if married filing jointly. Tina Orem is an editor at NerdWallet.

What are the new IRS rules for 2024?

For tax year 2024, for family coverage, the annual deductible is not less than $5,550, an increase of $200 from tax year 2023; however, the deductible cannot be more than $8,350, an increase of $450 versus the limit for tax year 2023.

How many years can you go without filing?

Additionally, you have to consider the state you live in. For example, if you live in California, they have a legal right to collect state taxes up to 20 years after the date of the assessment!

What would be the most logical reason an individual taxpayer would need to file a form 1099?

Some common examples when you might receive a 1099 include: You should receive a Form 1099-NEC if you earned $600 or more in nonemployee compensation from a person or business who isn't typically your employer. You should receive Form 1099-MISC if you earned $600 or more in rent or royalty payments.

What are the filing requirements for most taxpayers?

The minimum amount (or threshold) of income requiring you to file a federal tax return. 2023 filing requirements for most taxpayers: Gross income of at least $13,850 (individuals) or $27,700 (married filing jointly).

Is an individual required to file a tax return if he or she owes no tax?

The IRS has general filing requirements for most taxpayers. Even if no tax is owed, most people file a return if their gross income is more than the automatic deductions for the year. The primary automatic deduction is the the standard deduction. Its amount will depend on your filing status and age.