Federal laws in the United States determine whether you are required to file a tax return if you had no income during the previous tax year. This may be true even if you earned some money, but your earnings were below the standard deduction amount for that tax year.
Federal Tax Income Limits
The amounts of standard deductions vary based on your filing status, and they are typically adjusted each year to account for inflation. Every taxpayer is entitled to deduct the standard deduction from their income, so taxes are applied only to the remaining amount.
Below are the standard deductions for each filing status for the 2022 and 2023 tax years. Generally, you must file a tax return if your income exceeds the standard deduction for your filing status unless you are over the age of 65— in which case, different rules apply.
What is Considered Taxable Income?
All of these thresholds and limits depend on earned and unearned income. Earned income usually comes from salaries and wages or self-employment. Unearned income comes from interest and profits from investments.
However, some common types of income exceed these thresholds, so “gross income” rules apply to them. Gross income is the total of both earned and unearned income. Unemployment compensation is usually considered taxable income.
Why You Might Want to File a Tax Return Even If You Have No Taxable Income?
There are some good reasons to file a tax return even if you are not technically required to.
You may be eligible for a refundable tax credit. You won’t receive this amount unless you file a tax return to claim it.
If you had earned income that was less than the standard deduction and you paid taxes through your wages, you may want to file a tax return to get some of that money back.
State Income Taxes
Many states impose income taxes, and the rules about who must file vary by state and locality. Check with your state’s department of revenue to see what rules apply in the state where you live or work.
However, you won’t have to worry about this if you live or work in Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, or Wyoming. These states do not have an income tax. If you live or work in New Hampshire, only earnings from dividends and interest are taxed. Taxpayers who live in Washington State pay taxes only on capital gains, and that applies only if they are high-income earners.
Frequently Asked Questions
Where can I send my federal tax return?
Where to send your federal tax return depends on the state you live in, the type of tax return you are filing, and whether you are enclosing a payment to the federal tax office. You can check here to find out where to send your paper federal tax return.
How much do I need to earn to file taxes?
In general, you should always file taxes. Even if your income is too low that you are not required to file taxes, you may be able to get a refund or some benefits from the government. If you earned at least $12,950 in 2022, or at least $13,850 in 2023, you are likely required to file taxes. The minimum is higher for heads of household and married couples filing jointly.
Source: https://www.thebalancemoney.com/filing-taxes-no-income-5180054
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