ANSWERS: 1
  • Although most people file a tax return, current tax codes do not require this in every circumstance. Forgoing filing a return may save you time and stress if you are not required to file, but you can sometimes receive money back you did not know you are entitled to if you file a return anyway.

    Identification

    The requirement to file a federal tax return depends on how much you make and your status. The Internal Revenue Service has a complete schedule of who does not need to file in IRS Publication 17. Find a link in References.

    Types

    Generally, people who earn incomes that place them in the lowest income bracket make up the bulk of those who are not required to file a return, according to the IRS. Single individuals, for example, need to earn less than $9,350.

    Fun Fact

    A married couple in which both spouses are over 65 have the highest threshold for not needing to file a tax return at $20,900.

    Warning

    People often forget that they must file a tax return if they earned more than $400 through self-employment, reports the IRS. In addition, you must use your filing status as of the last day of the year, Dec. 31.

    Considerations

    If you are not required to file a tax return you may want to file one in case you are entitled to any refunds, according to Investopedia. Some tax credits, such as the Earned Income Tax Credit, entitle you to a refund for the amount of the credit even if you owe no taxes.

    Source:

    Internal Revenue Service; Publication 17

    Investopedia.com

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