Decoding the 2024 Tax Season: What’s the Income Threshold for Filing Taxes?

When tax season rolls around, a lot of people start wondering if they really need to submit a return.

Knowing the minimum income thresholds for filing taxes is essential to prevent penalties and make the most of potential refunds.

Figuring out if you are required to file taxes depends on your gross income, age, and filing status. Your gross income is what you earn before any deductions or adjustments.

You have options when choosing your filing status, such as single, married filing jointly or separately, head of household, or qualifying widow(er) with dependent child.

What is the required minimum income to submit taxes?

Earnings limits are established by the Internal Revenue Service (IRS) according to filing status and age.

A Guide to Filing Taxes in 2024

Below is an overview of the minimum income thresholds for different filing statuses:

• Individual: $13,850 for those under 65, $15,700 for those 65 and above.
• Married couples filing jointly: $27,700 if both spouses are under 65, $29,200 if one of them is under 65 and the other is 65 or older, and $30,700 if both spouses are 65 or older.
• Married couples filing jointly: $27,700 if both spouses are under 65, $29,200 if one of them is under 65 and the other is 65 or older, and $30,700 if both spouses are 65 or older.
• $5 for all ages if a married couple files separately.
• The head of the home receives $20,800 if they are younger than 65 years old and $22,650 if they are 65 years old or over.
• Earnings threshold for widow(er) with dependent child: $27,700 for those under 65, $29,200 for those over 65.

You can use these income levels as a guide to see if you need to make a tax report.

However, there are particular situations that require filing taxes regardless of the amount of income earned.

These include situations where you work for yourself and make at least $400 in net profits, get dividends from certain accounts, owe taxes on different transactions or accounts, and other unique situations that the IRS lists.

Note that there are circumstances in which you may still think about submitting a tax return even if your income is below the minimum.

Qualifying for tax breaks like the earned income tax credit or additional child tax credit may lead to a tax refund.

You may also avoid potential IRS notifications by completing a return, and if you find that you missed any tax benefits, you can get a refund from previous years.

Regardless of whether you meet the minimum income requirement, it’s crucial to assess your specific situation and weigh the benefits of filing taxes in order to stay in line with tax regulations and optimize financial possibilities.