The Tax system is the backbone of the modern financial system in particular and the world we live in today in general. As a law-abiding citizen, it is required by you to pay taxes and file tax returns if you fall into a certain earning class or your income exceeds the minimum threshold for paying taxes. Generally, not everyone is required to file a tax return each year.
Suppose your income exceeds the minimum threshold for a particular tax year announced by the IRS. In that case, you must prepare your tax returns to know how much you must pay to the government and subsequently file a return to the same to prove that you have paid the correct amount according to your income.
Requirement for Filing Returns Based on Status and Income in Tampa, FL:
There are many factors which determine, such as age, filing status, disability and income, whether you are required to file returns or not. We will first look into the requirement for filing returns based on status and income.
Status – Filing as Single:
- Filing as a single under age 65 earning $12,400 or more is required to file returns.
- Filing singles having age older than 65 does not need to file returns if income does not exceed $14,050.
Status – Married filing Jointly:
- A married couple that decides to file their returns jointly needs to earn a joint income of $24,800 if both spouses are under the age of 65.
- If one spouse’s age exceeds 65 years, their threshold for paying taxes increases to $26,100.
- The threshold increases further to $27,400 if the age of both spouses is above 65 years.
Status – Married filing Separately:
- If a married couple decides to file the separate reruns, the minimum income requirement falls to as low as $5 for both spouses.
Status – Head of Household:
- As a head of household, you are required to file taxes if you earn more than $18,650 under the age of 65.
- The amount required increases to $20,600 if the age exceeds 65 years.
(The household is the family of taxpayers, including spouse and dependent child(ren).
Status – Qualifying Widow(er) with dependent child:
- A widow or widower is required to file a return if he earns more than $24,800, the same as the married filing jointly.
Now that you have a good idea if you are required by law to file taxes are not, it is always wise to look for other reasons to file tax returns even if you are not required to do so. The IRS doesn’t always collect the money from taxpayers; they also give refunds to qualifying taxpayers.
For example, if you received income less than the minimum taxable income threshold and had income tax withheld from your income, you may be entitled to a tax refund from the IRS if you file the tax return on time.
Earned income tax credit is another good example of a tax refund that taxpayers can get if they file their returns, even if they are not required to.
Summing up, we recommend you file tax returns anyway, even if you are not required to by the IRS. You may get a tax credit or refund that can help you make your living.
If you need to know anything about settlement income tax, you can contact USA Tax Settlement – one of the best tax relief firms.
Zee Maq is a content writer who specializes in writing business and finance content. She has nine years of experience and loves to provide problem-solving content to help people tackle challenges in their everyday lives.