Do I have to file taxes?

Taxes are generally due every April, but if your income doesn’t meet certain thresholds, you may not need to file taxes at all.

Three factors determine whether you’re required to file: your age, filing status and income. Once you reach a certain income level, the law usually requires you to file taxes. The amounts are adjusted annually for inflation.

Keep in mind that you may want to file taxes, even if not required, to claim a tax refund.

How much do you have to make to file taxes?

If your gross income in 2024 is above the thresholds below for your age and filing status, you’re required to file a federal tax return.

Income thresholds for filing a tax return (income in 2024 for returns filed in 2025)

Income thresholds for dependents who are single (income in 2024 for returns filed in 2025)

Income thresholds for dependents who are married (income in 2024 for returns filed in 2025)

Each year the IRS adjusts the income thresholds to account for inflation (see 2023 income thresholds for returns filed in 2024).

In addition to federal taxes, you may also have to pay state taxes. Currently, nine states don’t tax income (two of those states do tax investment income). You can find out if you owe state income taxes by going to your state’s revenue, finance or taxation office’s website. The Federation of Tax Administrators has a link to every state’s tax office.

Penalties for not filing your taxes

Whether you file your return on April 15 or request an extension to file to Oct. 15, any money you owe is still due on April 15 every year.

If you don’t pay your taxes, you’ll face a penalty and interest on any unpaid balance. The penalty for failing to pay your taxes by the due date is 0.5 percent of your unpaid tax for each month or part of a month that your return is late. This penalty is capped at 25 percent of late unpaid taxes. If you file your return on time and request to pay by an installment agreement, the penalty drops to 0.25 percent for each month or part of a month of the installment agreement.

You’re also charged interest on the unpaid balance. The rate is set each quarter and is based on the federal short-term rate, plus an additional 3 percent.

If you owe taxes and don’t file your return on time, you’ll be charged a penalty for failing to file. This is usually 5 percent of the tax owed for each month or part of a month your return is late. This penalty is also capped at 25 percent.

Affordable Care Act premium credit claim

If you have health care coverage as a result of the Affordable Care Act, also known as ACA, you might need to file a return. This will be the case if you qualified for federal help to buy your coverage through the health insurance marketplace or exchange. If advance payments of the ACA premium tax credit were made for you, your spouse or a dependent who obtained marketplace medical coverage, that amount must be reported by filing a Form 1040 tax return and Form 8962, Premium Tax Credit.

This will ensure that you got the appropriate tax credit in advance. If you received too much premium help, you’ll have to repay it when you file your return. If you didn’t get enough, you can collect the extra when you file.

IRS rules regarding your age

As the tables above indicate, people with income above specified levels must file a tax return, and the amounts vary by age (the threshold amounts are higher for people 65 and older).

In most situations, your age for tax purposes depends on how old you were on the last day of the year. But when it comes to determining whether you have to file a return, the IRS says that if you turned 65 on New Year’s Day, you are considered 65 at the end of the previous tax year. The one-day grace period allows you to use the higher income thresholds to determine whether you must file a tax return.

Tax filing rules if you’re a dependent

The IRS has different rules for dependents who have money coming in. Generally, a dependent must file a tax return and pay any taxes due. But the amounts that trigger the filing depend on the type of income — earned or unearned.

• Earned income: Generally characterized as a salary, wages or tips. It also includes scholarships (if taxable) and fellowship grants.
• Unearned income: Includes investment interest or dividends, capital gains, unemployment benefits and some trust distributions.

The amount of each type of income that triggers a dependent’s filing requirement is adjusted each year for inflation, and is calculated using a formula that factors in the annual standard deduction amount.

Tax filing rules if you’re self-employed

Don’t forget about self-employment earnings, whether you’re a teenager running a neighborhood lawn service or an adult with a 10-person manufacturing operation. This money counts as income and will determine whether you have to file a return, regardless of whether it was your sole source of income or an occasional side job.

If your annual gross self-employment income is at least as much as the income level for your filing status, you have to send in a Form 1040 and Schedule C reporting your earnings.

You must also file a Schedule SE to pay self-employment tax if your net earnings from self-employment are at least $400.

When it pays to file, even if you’re not required to

For those few who don’t legally have to file, it may pay to send in a return anyway.

This is the case for individuals who don’t earn much but might be eligible for the earned income tax credit. This benefit is available to qualified individuals even if they owe no tax, meaning they would get money back from the federal government. Many people think the credit is available only to parents, but that’s not the case.

The IRS also says that most individual taxpayers are due a tax refund. But those taxpayers must file a tax return to get that cash.

You can check out the filing requirements section of IRS Publication 17 for more details.

Once you’ve determined that you need to file taxes, your next question may be: When do I have to file taxes? The deadline for filing your 2024 tax return is April 15, 2025. If you’re still not sure whether you must file a tax return, ask a tax professional, call the IRS at (800) 829-1040 or make an appointment at your nearest IRS Taxpayer Assistance Center.

Other situations that require filing a tax return

In addition to requirements based on age, your filing status and income, and the rules regarding the Affordable Care Act and self-employment income, there are several other situations that require you to file a tax return.

For example, if you owe any special taxes — such as the alternative minimum tax, taxes on distributions from a qualified plan like an IRA, household employment taxes for employees like a nanny, or tips you didn’t report to your employer — then you need to file a federal return.

Another instance which requires you to file a return is if you (or your spouse, if filing jointly) received distributions from a health savings account, Archer MSA or Medicare Advantage MSA.

If you worked for a church or a church-controlled organization that is exempt from paying Social Security and Medicare taxes and you had wages of $108.28 or more, you’re required to file a return.

Finally, if you have a tax liability and are making payments under an installment agreement, you must file a return.