Tax returns for 2017 are due on Tuesday, April 17, 2018. Do you need to file a tax return? It depends on your income, age, filing status, and a few other factors. Generally, if you earned more than the standard deduction plus one exemption, you need to file, but here are the specifics.
If you are in the following categories and your income is over the listed amount, you need to file a tax return for 2017.
This applies to income earned from a job but also to capital gains. If you sold stocks, property, or other assets and earned money from the sale, you may need to file even if you don’t have any earned income. To determine if you’re over 65, the IRS uses your age on January 1, 2018.
If someone claims you as a dependent on their return, the filing thresholds are different. Usually, this happens if you’re a minor, but it can also apply if you’re an adult being taken care of by another taxpayer.
The thresholds for dependents are different for earned income (money earned from a job or running your own business) and unearned income (money from stocks, bonds, or other investments). If you are a dependent and you earn over the following amounts, you need to file a tax return.
Regardless of your filing status or income level, there are a few other situations where you have to file a tax return. If any of the following statements apply to you, you should file:
Even if you’re not required to file a tax return, you may want to file a tax return anyway. In particular, if you think you might qualify for a refund, you should file.
Generally, if you don’t need to file a federal tax return, you don’t need to file a state one either, but there are exceptions. Check the rules in your state to determine whether or not you need to file.
If you are required to file a tax return, you should always file, even if you don’t have money to pay your tax bill. The fee for not filing is much bigger than the fee for not paying, and the IRS will usually let you make payments on your taxes owed.
This post was published on March 12, 2018