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Unsure if you need to file taxes? Learn who is required to file, why you might want to file even if not required, and what happens if you miss the deadline. Get answers to common tax questions and avoid penalties.
Taxes can be confusing, and one of the most common questions people ask is, "Do I even need to file a tax return?" The answer depends on various factors, including your income, filing status, age, and special circumstances. Understanding these factors will help you determine whether you are required to file and, if not, whether you should file anyway to claim potential tax benefits. Let’s break it down and clear up any confusion.
The IRS sets specific guidelines on who must file a tax return each year. Generally, you need to file if your income exceeds certain thresholds, but there are additional circumstances where filing is mandatory.
For the 2024 tax year, the IRS requires taxpayers to file based on their gross income and filing status. Here are the income thresholds:
If your gross income exceeds these limits, you must file a tax return. Gross income includes wages, self-employment income, investment earnings, rental income, and other taxable sources.
💡 Example:
Sarah is 30 years old, single, and earned $16,000 in 2024. Since her income exceeds the $14,000 threshold for a single filer under 65, she is required to file a tax return.
If you earned $400 or more from self-employment (including freelance or gig work), you must file a tax return, regardless of your overall income. This is because self-employed individuals are subject to self-employment tax, which covers Social Security and Medicare contributions.
💡 Example:
Jake works as a freelance graphic designer and earned $1,200 in 2024 from his clients. Even though Jake also works a part-time job earning $10,000, he still must file a tax return because his self-employment income exceeds $400.
You must file a tax return even if your income is below the threshold if any of the following apply:
💡 Example:
Jessica works as a waitress and earned $10,000 in tips in 2024. While her income from her primary job is below the threshold for filing, she must file because she has unreported tips that are subject to Social Security and Medicare taxes.
Even if you're not legally required to file, there are compelling reasons to do so.
If you had federal taxes withheld from your paycheck but earned less than the IRS filing threshold, you may be entitled to a refund. Many people assume that if they aren't required to file a tax return, they don’t need to—but filing could mean getting back money that was withheld from your paychecks throughout the year. The IRS will return any excess taxes withheld, which can be a significant financial boost. Even if you only worked part-time or for a short period, it's worth checking to see if you're eligible for a refund.
Some tax credits provide refunds even if you owe no tax. These include:
Having a consistent tax filing history can be beneficial for:
If someone claims you as a dependent, you may still need to file if you meet certain income thresholds:
If you determine you need (or want) to file a return, here’s how to get started:
Gather Your Documents
Choose a Filing Method
Submit Your Return Before the Deadline
The filing deadline for the 2024 tax year is April 15, 2025. If you need more time, file for an extension (Form 4868) by April 15, but remember that an extension only gives you more time to file, not to pay any taxes owed.
If you are required to file but don’t, you may face:
💡 Example:
Tom is required to file taxes for 2024 but misses the deadline. He owes $2,000 in taxes. As a result, he faces penalties of up to $500 for failing to file, on top of the $2,000 owed.
Filing taxes may seem complicated, but understanding the requirements can help you avoid penalties or even put money back in your pocket. If you meet the income thresholds or special conditions, filing is mandatory. However, even if you’re not required to file, it may still be beneficial to do so to claim refunds and credits.
Our team at Vincere Tax is here to help! Whether you’re unsure if you need to file or want to take advantage of available tax credits, reach out to us today for personalized advice and guidance.
If your income is below the threshold, you typically don't need to file. However, filing may allow you to claim refunds or tax credits like the Earned Income Tax Credit (EITC).
Yes, if you earned $400 or more from self-employment, you must file to pay self-employment tax and income tax.
Yes, filing may help you get a refund, claim tax credits, or build a filing history for loans or benefits.
You could claim credits like the Earned Income Tax Credit (EITC), Child Tax Credit (CTC), or American Opportunity Credit (AOTC), even if you're not required to file.
If you don’t file, you could face penalties (5% per month for failure to file, and 0.5% for failure to pay), and you may lose any refund you're owed if you don’t file within three years.
Being audited is comparable to being struck by lightning. You don't want to practice pole vaulting in a thunderstorm just because it's unlikely. Making sure your books are accurate and your taxes are filed on time is one of the best ways to keep your head down during tax season. Check out Vincere's take on tax season!
This post is just for informational purposes and is not meant to be legal, business, or tax advice. Regarding the matters discussed in this post, each individual should consult his or her own attorney, business advisor, or tax advisor. Vincere accepts no responsibility for actions taken in reliance on the information contained in this document.
For business tax planning articles, our tax resources provides valuable insights into how you can reduce your tax liability now, and in the future.
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