Tax Filing 101: How Much Do You Really Need to Earn to File?

The Income Thresholds That Could Save You Time (and Stress)

Filing taxes can feel overwhelming, especially if you're unsure whether you even need to. The good news? Not everyone is required to file—it all depends on your income, age, and filing status. Here’s what you need to know to stay compliant without unnecessary paperwork.

Who Must File Taxes?

The IRS sets minimum income requirements that determine whether you need to file. If you earn below these thresholds, you might be off the hook—but there are exceptions.

• Single Filers (Under 65): $13,850 (2023 tax year)
• Single Filers (65+): $15,700
• Married Filing Jointly (Both Under 65): $27,700
• Married Filing Jointly (One Spouse 65+): $29,200
• Head of Household (Under 65): $20,800

Exceptions to the Rule

Even if your income is below these limits, you may still need to file if:

1. You're self-employed and earned at least $400.
2. You owe special taxes (e.g., IRA penalties or household employment taxes).
3. You received advance payments for premium tax credits.
4. You had federal tax withheld and want a refund.

Why Filing Might Still Be Worth It

Even if you don’t meet the IRS filing requirement, submitting a return could unlock benefits like:

• Tax refunds from withheld wages or estimated payments.
• Earned Income Tax Credit (EITC), which could put money back in your pocket.
• Child Tax Credits if you have dependents.

What Happens If You Skip Filing?

If the IRS says you must file and you don’t, penalties can include:

• Failure-to-file fees (5% of unpaid taxes per month, up to 25%).
• Interest on unpaid balances (currently 7%).
• Loss of refunds if you wait more than three years.

Pro Tip: If you’re unsure, use the IRS’s online tool to check your status.

What Do You Think?

• Should the IRS raise income thresholds to account for inflation and rising costs?
• Is it fair that self-employed individuals must file at just $400 in earnings?
• Would you file taxes even if not required—just to get potential refunds?
• Does the current system penalize low-income earners unfairly?
• Should tax filing be automatic for those below the income threshold?