How Much Do You Really Need to Earn Before Filing Taxes? (The Answer May Surprise You)

Tax season is here, and if you're wondering whether you need to file, the answer isn't always straightforward. Income thresholds, filing status, and special circumstances all play a role in determining whether you must report to the IRS. Here’s what you need to know to stay compliant—and avoid penalties.

The Basics: Minimum Income Requirements for Filing Taxes

Your tax filing requirements primarily depend on three factors:

• Your age – Are you under 65, or 65+?
• Your filing status – Single, Married Filing Jointly, Head of Household, etc.
• Your income type – Wages, self-employment, investments, etc.

2023 Tax Year Income Thresholds

Below are the minimum earnings that require a federal tax return for most taxpayers:

• Single filers under 65 – $13,850
• Single filers 65+ – $15,700
• Married filing jointly (both under 65) – $27,700
• Married filing jointly (one 65+) – $29,200
• Married filing jointly (both 65+) – $30,700
• Head of household (under 65) – $20,800
• Head of household (65+) – $22,650

Note: These thresholds apply to tax year 2023 (filed in 2024).

Exceptions to the Rule

Even if your income is below the threshold, you may still need to file if:

1. You’re self-employed – If your net earnings exceed $400, you must file.
2. You owe special taxes – This includes Social Security/Medicare tax on unreported tips.
3. You received advanced premium tax credits for health insurance under the Affordable Care Act.
4. You have unearned income (like dividends or interest) exceeding $1,250 ($2,500 for married filing jointly).

Why File Even If You Don’t Have To?

You might qualify for a tax refund if:

• Federal income tax was withheld from your paycheck.
• You qualify for refundable credits like the Earned Income Tax Credit (EITC).

Bottom Line

Check the IRS guidelines or consult a tax professional if unsure. Filing when required avoids penalties, and skipping a return when owed a refund means leaving money on the table.

What Do You Think?

• Should the IRS raise the filing threshold to reduce paperwork for low earners?
• Is it fair that self-employed individuals must file at just $400 in earnings?
• Would a flat tax system simplify these rules, or create more problems?
• Should the government automatically file returns for those due refunds?

Let us know in the comments! And for more tax updates, stay tuned to Breaking Now News (BNN).