Determine Your Gross Income
To determine whether you need to file taxes, youll first need to determine your gross incomethe total amount of income you have before any tax deductions. If your income is equal to or higher than the taxable threshold for your filing status and age, youll need to file your taxes. But if its less? Youre not required to pay taxes.
Should I File Taxes Even If I Dont Have To
If youre not required to file taxes, you may still want to consider filing a tax return. Just because you dont owe taxes, you may still be entitled to a tax refund. There are certain situations where the IRS may owe you money, even if youre not required to file a tax return and if you didnt file, you would miss out on that tax refund.
If youre not sure whether you should file taxes, talk to a tax professional they can advise you on tax preparationand whether filing taxes is the right choice for you .
You Can Start The Clock On The Statute Of Limitations
The IRS generally has three years from the date you filed to audit your tax returnsix years if your return includes a substantial understatement of income. But if you dont file a tax return, the clock on that statute of limitations never starts running. In effect, the IRS could come after you in a decade or more and claim that you should have filed a return.
If youre worried about an IRS audit, you may want to file a tax return even if you didnt earn enough to trigger a filing requirement.
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Age And Status Requirements For Dependents
Being claimed as a dependent on someone elses taxes changes the rules a bit, and it does not rule out the possibility that you will still be required to file. If you are an adult, working dependent, you will likely be required to file your own return.
|Under 65||$12,400 earned|
|65 or older OR blind||$14,050 earned|
|65 or older AND blind||$15,700 earned|
|Under 65||$12,400 earned OR Your gross income was at least $5 and yourspouse files a separate return and itemizes deductions.|
|65 or older OR blind||$13,700 earned income OR Your gross income was at least $5 and yourspouse files a separate return and itemizes deductions|
|65 or older AND blind||$15,000 earned OR Your gross income was at least $5 andyour spouse files a separate return and itemizes deductions|
Special Rules For Taxpayers Age 65 And Older
Taxpayers who are age 65 or older have different, more generous filing thresholds. You would be considered age 65 for tax purposes if you were born on Jan. 1, 1957. However, the age-65 rule doesn’t apply to you if your income for the tax year was $5 or more and you were married but don’t file a joint return.
For most people, Social Security benefits dont count toward your income. However, they will if:
- You lived with your spouse at any time during the tax year and are submitting a married-filing-separate return.
- Half of your Social Security benefits plus your other gross income and tax-exempt interest exceeds $25,000
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Request A Copy Of Previously Filed Tax Returns
To request a copy of a Maryland tax return you filed previously, send us a completed Form 129 by mail or by fax. Please include your name, address, Social Security number, the tax year you are requesting and your signature. If you are requesting a copy of a joint return, include the information for both taxpayers and their signatures.
Or You Can Use Independent Computer Software Products
You can file both your Maryland and federal tax returns online using approved software on your personal computer. To use this method, you’ll need to know the correct county abbreviation for the Maryland county in which you live. You may need to enter the correct subdivision code for the city in Maryland in which you live.
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Do I Need To File Taxes
Not everyone is required to file or pay taxes. Depending on your age, filing status, and dependents, for the 2022 tax year, the gross income threshold for filing taxes is between $12,550 and $28,500. If you have self-employment income, youre required to report your income and file taxes if you make $400 or more.
The main factors that determine whether you need to file taxes include:
There are also a few other variables that impact your tax filing requirements, including whether you owe special taxes whether you received distributions from a health savings account , Medicare Advantage MSA, or Archer Savings Account or you, your spouse, or a dependent received advance payment from the health coverage tax credit or the premium tax credit.
So, you dont need to file taxes if:
- You earned less than the gross income requirements for your filing status and age
- You made less than $400 in self-employment income
- You dont owe any special taxes
- You did not receive distributions from an HSA, Medicare Advantage MSA, or Archer Savings Account
- You, your spouse, or a depending did not receive an advance payment for the health coverage tax credit or the premium tax credit
You do need to file taxes if:
Why You Might Want To File A Tax Return Anyway
If your income falls below the minimum income requirements, you might want to file a return if it will earn you a tax refund. This would be the case if you had any taxes withheld from your income, such as withholding on wages or retirement plan distributions, so you overpaid your taxes, because the income falls below these filing thresholds. No tax would be due, and you’d be entitled to a refund of the money that was withheld.
Filing could also generate a tax refund if you’re eligible for one or more of the other refundable tax credits, such as the Earned Income Credit. You’d have to file a tax return to calculate and claim the credit, and to request a refund from the IRS.
You might also want to file a return if you have beenor think you might bea victim of identity theft. Filing a return puts the IRS on notice as to what your true income was for the year, and it prevents a thief from filing a false tax return using your name and Social Security number.
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You Can Get A Refund Of Withheld Or Estimated Taxes
If your employer withheld federal income taxes from your pay or you made estimated tax payments, filing a tax return may allow you to receive some or all of those overpayments back in the form of a tax refund.
Keep in mind, if you regularly file a tax return just to get a refund of the tax your employer withheld, you might want to decrease your withholding.
File a new Form W-4 with your employer to reduce your withholding and increase your take-home pay, and you wont have to worry about filing a return unnecessarily.
Idaho To Consider Flat Income Tax In Special Session
Inflation is when the general price of goods and services increases across the economy, reducing the purchasing power of a currency and the value of certain assets. The same paycheck covers less goods, services, and bills. It is sometimes referred to as a hidden tax, as it leaves taxpayers less well-off due to higher costs and bracket creep, while increasing the governments spending power.
A tax bracket is the range of incomes taxed at given rates, which typically differ depending on filing status. In a progressive individual or corporate income tax system, rates rise as income increases. There are seven federal individual income tax brackets the federal corporate income tax system is flat.
The standard deduction reduces a taxpayers taxable income by a set amount determined by the government. It was nearly doubled for all classes of filers by the 2017 Tax Cuts and Jobs Act as an incentive for taxpayers not to itemize deductions when filing their federal income taxes.
An individual income tax is levied on the wages, salaries, investments, or other forms of income an individual or household earns. The U.S. imposes a progressive income tax where rates increase with income. The Federal Income Tax was established in 1913 with the ratification of the 16th Amendment. Though barely 100 years old, individual income taxes are the largest source of tax revenue in the U.S.
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What Is The Average Percentage Of Income That Goes To Taxes
It’s difficult to define an “average” U.S. taxpayer because there are so many factors involved in determining filing status, and there are different ways of calculating the taxes that they pay. But the Organisation for Economic Co-operation and Development put the average tax rate after benefits for a single worker at 22.4% in 2020, the last year for which comprehensive statistics are available. This dropped to 7% for the average married worker with two children.
Individual Tax Forms And Instructions
Below you will find links to individual income tax forms and instructions from tax year 2010 through the current year.
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Do I Have To File Taxes Other Situations That Require Filing A Tax Return
Regardless of income, you’ll generally have to file a tax return if:
You had self-employment net earnings of at least $400.
You received distributions from a health savings account, Archer Medical Savings Account or Medicare Advantage MSA.
You owe taxes on an IRA, health savings account or other tax-favored account.
You owe taxes on household employees.
You made more than $108.28 from a church or church organization.
You owe recapture taxes.
You owe Social Security or Medicare tax on tips you didnt report to your employer or that your employer didnt already take out of your pay.
Advance payments of the premium tax credit were made for you, your spouse or a dependent who got health coverage through the insurance marketplace.
Advance payments of the health coverage tax credit were made for you, your spouse or a dependent who got health coverage through the insurance marketplace.
You owe uncollected Social Security, Medicare or railroad retirement tax on tips you reported to your employer or on group-term life insurance and additional taxes on health savings accounts.
When A Dependent May Need To File A Tax Return
Taxpayers who are claimed as a dependent on someone’s tax return are subject to different IRS filing requirements, regardless of whether they are children or adults. A tax return is necessary when their earned income is more than their standard deduction.
The standard deduction for single dependents who are under age 65 and not blind is the greater of:
- Or the sum of $350 + the person’s earned income, up to the standard deduction for an unclaimed single taxpayer which is $12,550 in 2021.
A dependent’s income can be “unearned” when it comes from sources such as dividends and interest. When a dependent’s unearned income is greater than $1,100 in 2021, the dependent must file a tax return.
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When Social Security Benefits May Be Taxable
When determining whether you need to file a return and you receive Social Security benefits, you need to consider tax-exempt income because it can cause your benefits to be taxable even if you don’t have any other taxable income.
Here’s an example of where you may need to file, even with tax-exempt income:
- You are under age 65 and receive $30,000 in Social Security benefits, but also receive another $31,000 in tax-exempt interest. $14,700 of your Social Security benefits will be considered taxable income.
- This is greater than your standard deduction and you would need to file a tax return.
To figure out if your Social Security benefits are taxable:
- Add one-half of the Social Security income to all other income, including tax-exempt interest.
- Then compare that amount to the base amount for your filing status.
- If the total is more than the base amount, some of your benefits may be taxable.
TurboTax can help you estimate if you’ll need to file a tax return and what income will be taxable.
TurboTax Tip: If you have had federal taxes withheld from your paycheck, you might want to file a return even when you are not required to, so you can receive your tax refund.
Income Tax Filing Requirements
In the state of Arizona, full-year resident or part-year resident individuals must file a tax return if they are:
- Single or married filing separately and gross income is greater than $12,550
- Head of household and GI is greater than $18,800 or
Note: For non-resident individuals the threshold numbers above are prorated based on the individual’s Arizona gross income to their federal adjusted gross income.
The filing requirements are explained at the beginning of the instructions on all Arizona income tax returns. All tax forms and instructions are available to download under, or by visiting ADOR offices.
To expedite the processing of an income tax return, ADOR strongly encourages taxpayers to use the fillable Arizona tax forms or electronic file . and information are available. Each year, ADOR provides opportunities for taxpayers to file their individual income tax returns electronically at no cost to those who qualify.
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Other Circumstances That Require You To File
If you are self-employed, you are required to file taxes if you earned more than $400 in self-employment income.
If you pay special taxes, then you must file even if you dont meet the filing threshold. Special taxes include additional taxes on qualified retirement plans or when you must pay taxes on tips you did not report to your employer.
In addition, you must file taxes if you or anyone in your household enrolled in health coverage through the Healthcare.gov Marketplace and you received premium tax credits in 2021.
If you have special tax considerations, you may want to use the IRS interactive tool to determine whether you need to file.
Us Tax Filing Thresholds 101
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The significance of having IRS tax filing thresholds for Americans both on land and abroad is so everyone knows if they need to file US taxes or not. In fact, reporting worldwide income to the IRS if you exceed the tax filing threshold is a necessity for all US citizens, regardless of where they live.
This is where we at MyExpatTaxes come into play we can help Americans overseas become and stay compliant to enjoy expat life while sticking to their US tax responsibility.
Keep in mind that every year the minimum threshold for tax return will change. This is due to inflation that happens every year within the country and the global economy.
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You May Want To File Even If Youre Not Required To
If youll receive a tax refund, you should file a tax return even if youre not required to.
If youre not required to file taxes but you withheld taxes throughout the year, you can get that money back when you file your tax return.
You may also be eligible for refundable tax credits that will give you a tax refund even if you dont owe taxes. These credits include the Earned Income Tax Credit, the Child Tax Credit, and the American Opportunity Tax Credit.
If you didnt receive your first, second, or third stimulus checks or didnt get the full amount that youre eligible for, you can claim the stimulus checks when you file a tax return.
If youre not sure if you withheld taxes or qualify for tax credits, you may want to file a tax return anyway to avoid missing out. You have up to three years to file previous years taxes and/or claim past tax credits.
Gross Income Over The Minimum Threshold For Tax Return
If you found you are required to file, after checking your tax filing status, then its time to consider us. Our award-winning expat tax software and outstanding customer service can help you, a US citizen abroad, file on time for an affordable price. We have all the tax forms you need to become and stay tax compliant.
Just try out our software before you pay, or check out our reviews on our . We are certain youll be hooked by the simple, easy-to-do software!
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Dont Forget About State Returns
The filing requirements outlined above apply to federal income tax returns, but if you live in a state with a state-level income tax, you may also need to file there.
Filing requirements vary by state, so check with a tax professional or your states tax agency to figure out whether you need to file a state return.