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It is time to move to a new tax season and most taxpayers are not looking forward to having to prepare their tax return for the 2018 tax year that comes to complete it. While many expect the new tax laws to strengthen their refund checks, they will further complicate the process of preparing your returns.
For most people, not filing a return carries heavy penalties. But some people can legally choose not to file a return. Even if you are eligible to skip the tax season this year, you may still want to file in order to benefit from valuable tax breaks – and intense cash – that you could not get otherwise.
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If your income is below these limits, you are probably not obliged to file
Each year, the IRS indicates the amount of your income earning without having to file a tax return. The table below is for most taxpayers and indicates the different amounts you can earn based on your status and age.
|
Status of Filing |
Age |
Income Limit for Filing the 2018 Tax Return (as of 2017) |
|---|---|---|
|
Single |
Under 65 |
$ 12,000 (over $ 1,600) |
|
65 years of age and over |
$ 13,600 (plus $ 1,650) |
|
|
Married Married Together |
Under 65 Years (Both Spouses) |
$ 24,000 (plus 3 $ 200) |
|
From age 65 (single spouse) |
$ 25,300 (plus $ 3,200) |
|
|
65 years of age and over (both spouses) |
$ 26,600 (increase of 3 $ 300) |
|
|
Marriage Married Separately |
All Ages |
$ 5 ($ 4,045 decrease) |
|
Head of Household |
Under 65 |
$ 18,000 (up from $ 4,600) |
|
65 years of age and over |
$ 19,600 (up $ 4,650) |
|
|
Eligible widower |
under age 65 |
$ 24,000 (plus $ 7,200) ) |
|
from age 65 |
$ 25,300 (more than $ 7,300) |
Data source: IRS.
that these figures generally correspond to the standard deduction for those listed categories. The changes are due to the fact that standard deduction amounts have increased, but personal exemptions have been removed. The net effect of these changes has been to increase the numbers for all except those who are married filing separately. As a result, more people than ever before will be able to avoid filing tax returns if they wish.
But there are still exceptions that require you to produce
The IRS is quick to point out that some taxpayers must even file if their income is lower than the figures above. These cases are as follows:
- You owe special taxes, such as alternative minimum tax, household income tax or social security tax and Medicare on unreported income.
- You took distributions from a health savings account or a medical savings account. 19659045] Your income from self-employment or salary equal to or greater than $ 108.28 from a church or a qualified organization controlled by a church, exempt from the social security and health insurance.
- Advance payments of tax credit for premium or health coverage were: made for you or a member of your family covered by the tax return.
- You must pay the tax on foreign assets repatriated.
In addition, if you are considered to be dependent on someone else and have unearned unearned income from sources such as investments, you may need to produce even if your income is lower than shown in the graph. Single dependents must be declared if their unearned income exceeds $ 1,050 for those under 65, but you can have an additional $ 1,600 if you are 65 or older and $ 1,600 extra if you are also blind. For those who have a combination of earned and unearned income, if your income is greater than the sum of your earned income plus $ 350 plus the additional $ 1,600 that applies, you will also need to file a return.
Married dependents also file if their earned income exceeds $ 12,000 or if their unearned income is greater than $ 1,050 for persons 65 years of age or under. The same general rules apply to persons 65 years of age and over and to the blind, except that the additional amounts are $ 1,300 instead of $ 1,600.
Sometimes you should still file
Even if you do not have to file, you should do so if it will bring you extra money. The most common situation concerns people whose tax has been withheld on their paycheck because you can not get a refund to get that money back if you do not do it.
In addition, some tax credits give you the opportunity to get refunds even if you do not have tax to pay. These include the earned income credit, the child tax credit and the American Opportunity education credit. With thousands of dollars at stake, it's worth bothering to file for that money back.
Finally, if you have concerns about a tax audit, the rankings are smart. This entails the beginning of a three-year period to the date of your return and, three years later, the IRS can review your return only in the case of errors major or fraud.
Do what you need.
No one likes to pay taxes and sometimes there is no reason to do it. But even if the above guidelines apply to you, make sure you do not lose your chance of getting a tax refund by not taking the time to prepare and file a return.
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