Does everybody need to file income tax returns every year? Not necessarily. The fact is, there are lots of different individuals who do not need to file a return. So who are those who need to file and who are exempted? Read on to find out. Click here to read or watch more IRS Help resources.
The lowest limit is $3,000, meaning if you earn less than $3,000 per year, you are not required to file any return. In most cases, if you make below $15,000 per year, you quite certain to get a refund of all your taxes. There are many other exceptions that change each year depending on how the tax code changes. You should consult a tax professional like a tax attorney or check with the IRS themselves if you are not certain whether you are required to file a return.
Generally most taxpayers will make a filing just to be on the safe side. The overwhelming majority of people who wonder if they are required to file are most often going to end up with a refund. To compound the confusion, where you work also makes a difference to whether you should file or not. For example, if you work for a non-profit organization, there are different rules that determine who and when to file. If you are self-employed, the requirements may be even more difficult to understand.
Furthermore, for taxes on pensions and savings, the filing requirements differ. Since the tax code changes so dramatically each and every year, it is impossible to say what each individual’s income tax filing requirements really are. For starters, you should consult your employer and ask him or her whether you should file a return. The IRS also has a toll-free phone number that is available to call most of the week that will answer your basic tax-related questions for free. Bear in mind that the penalty for not filing (if you should file) is rather steep. So do not assume you are exempted from filing. It’s better to find out for sure. After all, those earning less than $15,000 a year will likely get a refund anyway so you might as well file.
There are even several free, online tax filing systems you can use if you don’t want to pay $20 to file your taxes. You may be eligible for the earned income tax credit if your salary is below a certain amount. To find out all the relevant tax breaks available to you, consult a tax attorney or accountant.