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Do I Need To File a Return?

Updated: 1/22/2009
Article ID: 5370

Not everyone needs to

If you have modest or low income, you might not need to file a tax return.

But you might want to -- so you get a refund on any federal income tax withheld, or you qualify for the earned income credit, which can put money in your pocket if you are a low-income worker.

Generally, these three factors determine whether you must file:

  • Your filing status, that is, whether you file as a single person or as a married couple filing jointly.
  • Your age, whether you are under age 65, or 65 and older.
  • Your gross income.

What is your gross income?

All the income you received that is taxable, whether in the form of wages and tips, self-employment income, taxable interest and dividends, capital gains, rents, goods, property or services. This does not include Social Security benefits.

Guidelines for MOST people

 Filing Status 2008                                           Must file if gross income is at least

 Single

   Under 65                                                             $8,950

   65 or older                                                         $10,300
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Married Filing Jointly

   Both spouses under 65                                   $17,900

   One spouse 65 or older                                   $18,950

   Both Spouses 65 or older                                $20,000
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Married filing separately                                     $3,500

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Head of Household

   Under 65                                                              $11,500

   65 or older                                                           $12,850

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Qualifying Widow(er)

            Under 65                                                    $14,400

            65 or older                                                 $15,450

Exceptions for self-employed and dependents

There are exceptions to these guidelines. For example, if you are self-employed and your net earnings (income minus expenses) are more than $400, you need to file and pay self-employment tax. (You won’t receive credit toward Social Security benefits if you don’t report and pay this tax.)

If you can be claimed as a dependent by another taxpayer, the income threshold for filing is generally lower than the chart above. For instance, children and teens who work must file a tax return only if they earn more than $5,450 a year.
 
Different filing rules apply, however, for dependent children who have investment income. To learn more, read The Kiddie Tax. 

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