Filing taxes isn’t solely determined by your income. The requirement to file a tax return largely depends on your age, filing status, income level, and dependency status. Generally, if your income does not exceed the specified threshold, you’re not required to file a return. However, certain situations may require you to file a tax return, even if your income is below the threshold. Examples include:
- Self-Employment Income: If you earned $400 or more from self-employment, including freelance work or contracting, you must file a return to report your earnings and pay self-employment taxes.
- Unemployment Income: Unemployment benefits are generally taxable and must be reported.
- Health Savings Account (HSA) Distributions: If you withdrew from an HSA or Archer MSA, you might need to file to report those distributions, even if they were used for qualified medical expenses.
- IRA Distributions: Withdrawals from an IRA may be taxable depending on your age, the type of account, and whether the withdrawal qualifies for an exemption (e.g., for buying your first home or medical expenses).
Note: Even if your income falls below the threshold, there are scenarios where you might need to file a return or could benefit from doing so. Keep reading to learn more.
How Old Do You Have to Be to File Taxes?
The IRS doesn’t have a specific age requirement for filing taxes—it’s based on income instead.
While most kids claimed as dependents won’t need to file, special circumstances, like earning regular income from a job, could require them to pay taxes.
Income Requirements if You Are Claimed as a Dependent
Dependents have unique filing requirements based on their age and whether their income is earned or unearned:
- Earned Income: Money earned from working (e.g., wages, salaries, tips).
- Unearned Income: Income earned without work (e.g., interest, dividends, investment gains).
The filing thresholds for dependents combine both types of income. You can find more information on the IRS website here.
Income Requirements for Single Dependents
Age group | Required to file if your UNEARNED income was more than: | Required to file if your EARNED income was more than: | Required to file if your COMBINED income was more than: |
Under 65 | $1,250 | $13,850 | $1,250 OR your earned income (up to $13,450), plus $400 |
65 and over | $3,100 | $15,700 | $3,100 OR your earned income (up to $13,450), plus $2,250 |
65 and over and blind | $4,950 | $17,550 | $4,950 OR your earned income (up to $13,450), plus $4,100 |
Income requirements for married dependents
You may still qualify as a dependent if you are married and filing separately. If you are married and claimed as a dependent on another tax return, use the following thresholds to determine if you must file a tax return:
Age group | Required to file if your UNEARNED income was more than: | Required to file if your EARNED income was more than: | Required to file if your COMBINED income was more than: |
Under 65 | $1,250 | $13,850 | $1,250 OR your earned income (up to $13,450), plus $400 |
65 and over | $2,750 | $15,350 | $2,750 OR your earned income (up to $13,450), plus $1,900 |
65 and over and blind | $4,250 | $16,850 | $4,250 OR your earned income (up to $13,450), plus $3,400 |
What documents do I need before I begin my return?
If you determine that you are required to file a return, you should gather the following documents:
- Bank Statements
- Income statements such as a W-2 or 1099-NEC
- Receipts if you are needing to take itemized deductions
- Amounts of medical, education, and child care costs that you have paid
- Any additional tax forms you may have received
If you would like more information on what items that you may need, we have a comprehensive blog that will give you a better look at documents and other information you may need for filing your taxes. You can access this information here: Everything You Need to File Your Taxes!
Is there a penalty for not filing taxes?
If you do not file your taxes, you may be penalized by the IRS. If you do not file or file an extension for extra time to file you may have a failure to pay a Failure to File Penalty. This penalty is 5% of your unpaid tax liability for every month you are late which can go up to 25% of your total unpaid tax balance.
If you do not owe a refund, you will not be penalized for not filing as you do not owe anything to the government. However, if you do not file the return within three years, you will no longer be able to claim any refund.