How Much Money Do You Have to Make to File Taxes?
88How much money do you have to make to file taxes?...
What is the minimum income to file taxes?...
These sort of questions have been asked over & over again on forums and message boards all across the web.
It's a Good Question with Multiple Answers. Read on...
The amount will vary depending on 3 Major Factors: Your Age, Filing Status, and Type of Income You Receive. For example if you’re single and under 65 years of age, and earned at gross income of least 8,950 then you need to file. And if you were 65 years or older and had a gross income of at least 10,300 you need to file.
These filing requirement variations can go on & on all day long. Again, it all depends on the 3 Major factors of Age, Filing Status and Income Type Received. IRS 1040 Manual gives further details concerning the question of How much money do you have to make to file taxes. (Once there if you scroll down about an inch you will see a chart that breaks different scenarios down for you.)
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NOTE: Be aware that Tax laws change all the time. This is the latest information that I've found to be current for income earned in 2008.
NOTE 2: You’re also required to file if you had net earnings i.e., after expenses in self-employment income of at least $400. Refer to my List of Tax Deductions Self-employment / Business hub to discover multiple ways to minimize your self-employment / business tax liability.
Are you SURE you're an employee??? - You may think that you're an employee BUT you could actually be an independent contractor / self-employed individual and not even realize it.
Well I've got news for you!
If your job surprising doesn't take any taxes out your check - and you receive a 1099 rather than a W2 during tax season -- Then YOU my friend are considered a self-employed individual in the eyes of the Government, and YOU are responsible for paying personal taxes and subject to self-employment tax as well.
Many employers have been hiring people like this low-key to avoid the expenses of hiring "real employees" while still maintaining complete control over you as an employee - even though you're not. But that's a whole 'nother story. Now I'm not trying to get you revved-up about your job because we all need to keep money flowing -- But hey that's the real scoop!
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Forms
As an employee, you should receive W2 forms that reports your earnings for the year. If you were an independent contractor then you should receive a 1099 form. If you were both, then expect to get both. When you file, in order to maximize your return and lessen the amount of taxes that you owe, be sure to deduct as many legitimate items as possible. Consult with with your tax professional or guide for best results.
Deadline
April 15th of each year is the deadline for filing your Federal individual income tax return. If you miss this date you can request an extension. But I advise you to do everything in your power Not to miss Deadline. Just get the tax stuff out the way to avoid extra hassle and delay.
Filing When You Don’t Have To
Filing even when you don't have to is not a bad idea. It could turn out to be very beneficial for you! If you’ve earned any Federal Income or Earned Income Credit (EIC), it is recommended that you file anyway because you may be able to get a return. You definitely don’t want to leave money on the table no do you?...didnt think so.
The IRS puts it like this: “Refund. Even if you do not have to file a tax return, you should file to get a refund if box 2 shows federal income tax withheld or if you can take the earned income credit…" See this W2 example and once there just scroll down past the form for details. If you don’t take time to enlighten yourself about this stuff, Uncle Sam definitely won’t chase you down to give you your money. And they state that in their own words.
Free Vs. Paid Tax Assistance
If you just can’t afford to hire a Tax professional to work on your behalf, there are a few places you might be able to get them done absolutely free. You can check your local government offices or do a “free tax” search online. However, I don’t trust or recommend this method.
Completely free tax route should be last resort in my opinion. It’s like getting a Public Defender to defend you in a legal case. Who do you think will work harder for YOU: A Free Public Defender hired by the State/Government - Or - Your own Personal Attorney hired by YOU to work specifically in your best interest? ...nuff said.
See it’s the same with taxes. Keep in mind: The Government is not in the business of giving away money. They want to keep every penny they can possibly get ~ You Can Bank On That!
(Now if you do have a fairly simple situation, If I were I'd go through a 3rd party service like Turbo Tax Free Federal Edition rather than trusting some government funded program.)
Final Word From Me...
Ok now move your head a little closer to the screen and listen v e r r r y closely, I’m only going to say this once!
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THE GOVERNMENT WILL NOT REFUND ANY MONEY OWED TO YOU IF YOU FAIL TO FILE. THEY WILL NOT TELL YOU. THEY WILL JUST KEEP YOUR MONEY. THEY ARE NOT IN THE BUSINESS OF PAYING OUT MONEY VOLUNTARILY.
THERE ARE MILLION$ UPON MILLION$ OF UNCLAIMED DOLLARS SITTING INSIDE THE GOVERNMENT BANK VAULT RIGHT NOW AS WE SPEAK -- COLLECTING BIG FAT INTEREST FOR THEM. YOU MUST CLAIM YOUR MONEY TO GET IT. IF YOU DO NOT, THEN THEY CONSIDER IT FAIR GAME TO KEEP YOUR MONEY.
DON’T LEAVE MONEY ON THE TABLE -- DON’T LEAVE MONEY ON THE TABLE. And did I Mention → DO NOT LEAVE MONEY ON THE TABLE!
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Ok there!... and I meant to Yell. Are your ears buzzing?... GOOD:-) Now at least I know these words will ring in your ears every time you think the thought “oh I don’t have to file taxes”. Now you’ll at least think twice...because now you know you just might have Money waiting for you!
P.S. You might wanna check through prior years earnings as well if you haven't filed in a while. You could be sitting on a small Fortune! and not even know it. The Turbo Tax software I use helps with that and more.
I find that filing taxes online with Turbo Tax is quicker, better and more convenient than hiring an expensive accountant. It’s like having my own little Tax Wizard sitting right there on my shoulder whispering Every Single Tax Break I Can Get $-)
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- Tax Discussion
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Comments
Yeah Darlene that's what I thought too until I did thorough research. And by they way... that's for net earnings of at least $400 per year i.e. after you deduct expenses. That's why it's good to deduct Every Single Deduction the Law Allows in business AND personal situations. That lowers your overall tax liability!-)
Great hub!
Thank You drop by again:)
I MADE 4,800 THIS YEAR CAN I FILE TAXES AND WILL I GET A REFUND
Thanks for visiting Brenda. Without knowing your full financial situation I can't answer that question for you. I'd suggest that you consult with your account or tax professional. Or you can do as I do and use TurboTax which will walk you through everything, guiding you through every deduction possible under tax law. This system will guide you through all steps at No Cost. Then at the end if you like the numbers you see and want to proceed with filing your taxes through TurboTax, you'll have the option to become a Full customer at that time.
Best Wishes for a profitable tax season $-)
Good info, I dont know where I got it that you have to file take if you made a minimum of $5,000
Well Anthony you could've gotten it from anywhere, there's a lot of misinformation floating around out there -- which is why I make sure I do thorough research before publish a thing!
Well this is a deep subject. And it is a matter of fact (though the IRS won't admit this) that the income tax is based on VOLUNTARY compliance, and really is voluntary.
Witholding is also a sham. Witholding is a forced loan from you to the IRS based upon the premise that you WILL owe a tax.
While I am not a tax attorney, I can assure you that for the last 7 years the IRS owed me a refund! I also expect them to owe me a refund this year as well and every year for the rest of my life....SO that is why I voluntarily participate in their voluntary income tax sceme.
And here is the secret, I didn't even realize that I learned this from my parents all my life growing up. You must live your life in a manner in which you are able to AVOID taxes. I guess I learned this and didnt even know it, I naturally live my life in a way in which I am always entitled to a refund! I am not talking hundreds here but thousands per year!
Hats off to you! It's all about getting refunds (or at least lowering tax liability as much as possible) by practicing Strict Money Management and keeping meticulous records and receipts. I can't recall the last time I Didn't get a refund!
Thanks for the information!
Great post - here is a little bit more info and sort of one of my peeves:
Why give the government an interest free loan every year? They aren't going to give you one! Watch your payroll taxes -adjust during the course of the year the amount of deductions you have. If I get back $10 I am happy - If I have to pay $10 I am happy. I know that I brought home more money last year and was able to bank it in savings at least drawing some interest.
For some weird reason people like to get money back at the end of the year - weird - try this - take the money you desperately need now and give it to someone you don't know - make them promise to give it back to you next year... stupid.
Go check out http://www.Fairtax.org - the system where we pay a tax on goods and services only. This should bring back more jobs as employers won't have to incur the cost of going dollar for dollar with payroll taxes - don't even get me started on Social Security (Americas Largest Ponzi Scheme)
For some they will want to file taxes even if they did not make enough to have to. These are usually single moms who are barely scrapping by and having children qualifies them for EIC.
very good hub for coming TAX Time
Thanks for visiting and commenting everyone! Make this tax season work in your favor!
Nice hub!
The only income we have is my husbands Social Security disability which is $850.00 a month. We have five children. Should we file? Would be get anything back? Thanks Jewl
@Nancy Thanks for your comment:)
@Jewl Well it really depends on a lot of different variables as you can see in this hub. And situations may vary. But if you say $850 per month that averages out to a little over 10,000 per year. So you Might qualify for some type of low income credit or maybe even a stimulus check for social security recipients. But I'm not absolutely sure. What I'd suggest is that you plug the numbers into TurboTax and see what it comes up with - see if it's worth filing. This way all guesswork will be eliminated. They offer a free Federal edition for all simple tax situations, yours sounds like it may fall under in this category.
Best Wishes to You and Yours $-)
if my only source of income this year was $4500 from an IRA, do I need to file? I checked out turbotax and it said I will owe the feds 10%, can't give em what I don't have. Do you know of the dollar amount limit that mandates a person must file?
First review all the numbers you input carely and see if you come up with same thing.
Also, Check the first link on this page -1040pdf- and scroll down to page 7 also look at the chart under it. There's a lot of details and variables involved with IRA that makes it a very unique tax situation. From my guess sounds like this tax was possibly a result of an early withdrawal tax.
Here's what the IRS says: "Withdrawals made prior to age 59 1/2 may be subject to a 10% additional tax. You also may owe an excise tax if you do not begin to withdraw minimum distributions by April 1st of the year after you reach age 70 1/2. These additional taxes are figured... http://www.irs.gov/taxtopics/tc451.html
I'm wondering if we need to claim a portion of our income this year. I am not sure what constitutes as "sub-contractor" - as you mentioned in your article. We have no legal business name, no tax ID#, etc.
My hubby (age 32) does some extra work for some "friends" and they pay him by check monthly. Total income this year was $2540 with a $420 (grand total $2120) worth of deductions. We are filing married/jointly (however I stay at home with 2 kids with no additional income). I am not sure if we need to claim this on this years return. We did not receive a 1099 or a W2 - as I honestly don't believe they (either non profit org or not for profit org) report on this. Also, our overall income this year on his hourly job was about 30K.
What are your suggestions? Are there limits to income that you HAVE to report - or is there just a suggested limit? Is this one of those "babysitting" moments that's not worth reporting based on our tax bracket, etc.
Thanks, in advance!
Well a lot of people haven't received their W2s or 1099s yet, but that doesn't mean it's not coming. And if he earned $2540 and this company took out taxes - then forms should be on the way. If you all don't wanna wait I'd suggest contacting them to find out if they sent it out (or sent it to the right address). Believe me you don't want to file without having ALL your tax forms. This happened to me once and you'll just run into complications and possible late-fee penalties. So check the source to see if they sent it out.
what is the min amount you have to claim taxes
Well Theresa that's what this hub is all about. I'd suggest you take your time and review this hub thoroughly. It would be to your benefit. Situations vary. Thanks for stopping by!
I currently live overseas. And I was working in New Jeresy in 2008 For the months of Jan, Feb, and March. Do I still need to file my taxes if I made 4,700? And how do I file my Federal and State Taxes from overseas. Please Answer Back. THANK YOU SSSSSSSSSOOOOOOOOOOOOOOOOOOOOOOOOO much.
Hi Kim here's some information I found that might help you
The IRS say...
"If you're a U.S. resident or resident alien, generally your Worldwide income generally is subleject to U.S. income tax basically you Worldwide income is subject to U.S. Income tax, ragardless of where you are living (certain exemptions may apply)...http://www.irs.gov/pub/irs-pdf/p54.pdf
Also you can check this guide as well - http://www.irs.gov/pub/irs-pdf/p516.pdf
As far as receiving taxes, people get income via Direct Deposit all over the World. And be advised that the IRS has offices abroad as well; they're Everywhere believe that! If you need contact information to these offices it can be found in that second publication toward the bottom.
Best Wishe$ ~ Hope this helps!
Just got my refund WooHoo!!!-)
It's going to be very interesting to see what happens as more and more states enter periods of financial insolvency. New York for one is about to lay off 8600 state workers. Can massive state tax increases be far behind?
I have also come accross this type of question like how much required for me to file tax file. I have gone through all others artilce on this topic but no where I could find information as you have discussed here. Very great article as well as informative and your guide is very suggestive and accurate. Thanks for this great hub. I think you already being rewarded for your hard work you put here. Congratulation on your success. With Blessing. Money Maker Guy.
Thanks you for your compliment ~ I visited your website and left a comment as well ~ That's a great resource and niche market you got going there!
I've used Turbo Tax before and have been 100% satisfied!
True the government will never come after you to say they have money for you - which is why it's important to remember that if you get an email that looks like the IRS - it is not. They would never email you for your info online - and never to tell you a refund is waiting. This is an annual scam.
Thanks for this info!
Yeah TurboTax has worked great for me too! And Thanks for pointing out that Scam Issue; this is definitely something that people need to Beware of.
Tax season is really no big deal for us because we get a refund, but I think it is definitely a headache to most people, especially in this economic climate. People might have to file an extension to make a payment or go on payment plans. http://www.unclepayday.ca - payday loans online
I registered a company, but I have never used the name for any business and have'nt made any income with the company, should I still file taxes?
Ike if it's just a name and haven't even started doing business with it (and earned no income whatsoever) then there's really nothing to worry as far as I know because there's no income there. Now Whenever you do finally put your business into action, be sure to go back and deduct the cost of the name (if any) as a business start-up expense.
excellent hub, thaks for sharing this information and advice.
I enjoyed the editorial. It is very exciting. Thank you for the information. I will be back.
Good information for everybody to keep in mind. Consumer tax software is good but sometimes you can get the same service online for a lower cost. If you decide to go a tax preparer, look for either an Enrolled Agent or a CPA. Both are licensed and will do your taxes right the first time.
DarleneMarie says:
12 months ago
Valuable information Multi - I thought as a contractor, you have to make more than $600 per year to claim it.