Who is Required to File a Tax Return?

Now that tax season is officially open, it is important to know who is required to file a tax return this year. For most people, the last day to file a federal income tax return, or to request an extension to file, is April 15. If you miss this deadline, you could face penalties. 

You have to file a federal income tax return with the IRS once your income meets a certain threshold or limit. Those income limits depend on standard deduction amounts, which are based on your filing status and your age. For example, if you are 65 or older, the income threshold for whether you are required to file a tax return is higher. (But keep in mind that most forms of retirement income are taxable at the federal level). 

Another example involves some dependents with their own income — either from part-time jobs or investment earnings. They might have tax-filing requirements, but with thresholds that are lower than most.

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Who needs to file a tax return?

If you are under age 65, you must file a 2023 federal income tax return if you meet the income threshold for your tax filing status as noted below:

• $13,850 for single filers
• $20,800 for head of household
• $27,700 for married filing jointly
• $27,700 for a qualified surviving spouse

Due to the extra standard deduction, income thresholds are higher for people age 65 or older. If you are age 65 or older and meet the below income threshold for your filing status, you must file a 2023 federal tax return.

• $15,700 for single filers
• $22,650 for head of household
• $29,200 for married couples filing jointly when one spouse is 65 or older
• $30,700 for married couples filing jointly when both spouses are 65 and older
• $29,200 for a qualified surviving spouse

If you are married and filing separately, you must file a tax return if your income is five dollars or more, regardless of your age. 

When you should file taxes with the IRS

Even if you don’t have to file a federal income tax return this year, you might want to if it means getting a tax refund. For example, employees who had taxes withheld from their paychecks last year could receive a tax refund. If you had too much money withheld for taxes throughout the year, the IRS will send you the difference but only if you file a tax return. 

Additionally, you might qualify for various refundable federal tax credits, even if you were self-employed. Some of those credits include the Earned Income Tax Credit (EITC), the Child Tax Credit, and the American Opportunity Tax Credit (AOTC).

• The EITC is a refundable tax credit that is worth up to $7,430. The amount of the credit depends on your income and the number of qualifying children.
• The AOTC is a credit for certain education expenses, such as tuition and textbooks. If you're eligible, you can receive up to a $2,500 credit for each eligible student. The credit is partially refundable, up to $1,000.
• The child tax credit has changed over the last couple of years, and a new child tax credit might soon pass Congress. However, the credit is currently worth up to $2,000 per child, and up to $1,600 is refundable.

Do minors need to file taxes?

Dependent minors will not owe tax if their earned income does not exceed the standard deduction. The standard deduction for the 2023 tax year is $13,850 for single filers. Minors might still get a tax refund if they earned less than that amount.

Also, minors need to file a tax return if they collected more than $1,250 in unearned income during 2023, such as from interest or dividends. 

When the minor has only unearned income, parents might have the option to report it on their own tax return. When minor dependents earn both earned income (e.g., tips, wages, or self-employment income) and unearned income (i.e., income from investments or unemployment), the combined amounts might trigger a filing requirement.

IRS self-employment income threshold

If you are self-employed, you must file a tax return if your net self-employment income is $400 or more. This is true whether you run your own business full time or on the side. If you are self-employed and required to file a tax return, you can reduce your tax liability by taking advantage of qualifying deductions and credits for the self-employed. 

The U.S. tax system is a pay-as-you-go system, so self-employed people often have to make estimated tax payments. The first quarterly estimated tax payment for 2024 is due on April 15, unless that date has been extended by the IRS due to severe storms and disasters. Most self-employed workers who expect to owe at least $1,000 ($500 for corporations) can avoid penalties if they make this estimated payment by Tax Day.  

Filing income tax returns

If you need to file a federal income tax return remember: Tax Day is April 15. You can use IRS Free File if your adjusted gross income (AGI) was $79,000 or less for 2023. 

Also, if you aren't sure if you need to file a tax return, you can use the IRS Interactive Tax Assistance tool to help you determine whether you are required to file a tax return and qualify for specific tax credits. 

Related Content

• 2023 Child Tax Credit: Who Qualifies and What It’s Worth
• What's the 2023 Standard Deduction?
• Tax Season is Here: Big IRS Tax Changes to Know Before You File