Do you need to file? (2024)

FAQs

Do I have to file taxes if I make less than $5000? ›

So as long as you earned income, there is no minimum to file taxes in California. It is a good idea to talk with a tax professional to determine your filing status and whether you are required to file or could benefit from doing so anyway.

The minimum income amount depends on your filing status and age. In 2023, for example, the minimum for Single filing status if under age 65 is $13,850. If your income is below that threshold, you generally do not need to file a federal tax return.

Don't have any special circ*mstances that require you to file (like self-employment income) Earn less than $13,850 (which is the 2023 standard deduction for a taxpayer filing as Single)

If you have income below the standard deduction threshold for 2023, which is $13,850 for single filers and $27,700 for those married filing jointly, you may not be required to file a return.

Failure-To-File Penalty

The failure-to-file penalty amounts to 5% of the unpaid tax for each month or partial month the tax return is late. The IRS limits its penalty to 25% of the unpaid tax amount, but will charge interest on the penalty.

The IRS continues to identify people who have a filing requirement but have failed to file a return. By law the IRS may file a substitute return for you if you do not voluntarily file. A series of letters is first sent explaining the possible action IRS may take as part of the Substitute for Return Program.

Generally, you must file an income tax return if you're a resident , part-year resident, or nonresident and: Are required to file a federal return. Receive income from a source in California. Have income above a certain amount.

Under-withholding from Your Paycheck

Under-withholding is the #1 reason individuals owe taxes. This occurs when not enough tax is taken out of your paychecks throughout the year.

How much money can I make a year without filing taxes? ›

It's possible. If you do not have any federal tax withheld from your paycheck, your tax credits and deductions could still be greater than any taxes you owe. This would result in you being eligible for a refund. You must file a tax return to claim your refund.

If I didn't get a 1099-NEC or 1099-MISC, do I still need to report the income if it's less than $600? Yes. The IRS requires that you report all of your income, even if it's less than $600 and you didn't get a tax form for it. Follow these steps to enter your income.

If you qualify for tax credits, such as the Earned Income Tax Credit or Additional Child Tax Credit, you can receive a refund even if your tax is $0. To claim the credits, you have to file your 1040 and other tax forms.

You report the taxable portion of your social security benefits on line 6b of Form 1040 or Form 1040-SR. Your benefits may be taxable if the total of (1) one-half of your benefits, plus (2) all of your other income, including tax-exempt interest, is greater than the base amount for your filing status.

There's no penalty for failure to file if you're due a refund. However, you risk losing a refund altogether if you file a return or otherwise claim a refund after the statute of limitations has expired.

Minimum income requirements for filing taxes

$13,850. $15,700. $27,700 if both spouses are under age 65. $29,200 if one spouse is under age 65 and one is 65 or older.

This means that for 2023 and prior years, payment apps and online marketplaces are only required to send out Forms 1099-K to taxpayers who receive over $20,000 and have over 200 transactions. For tax year 2024, the IRS plans for a threshold of $5,000 to phase in reporting requirements.

Any year you have minimal or no income, you may be able to skip filing your tax return and the related paperwork. Before you decide to skip your return this year, consider whether it might be worthwhile to file.