You Have to Make to File" />
My name is Timothy Sheardy and I am tax and accounting professional from the Metro Detroit area. I have completed my Masters of Science in Taxation specializing in small business and self-employed and Bachelors of Arts in Accounting. As of 2020, I have been preparing taxes for 9 years and also have 10 years accounting experience with 6 of the using QuickBooks both desktop and online and 9 using Sage Peachtree I pride my business on working with clients. I believe a knowledgeable client will make better business decisions. The success of them and their business is most important.
August 2, 2024 February 14, 2023 Reviewed by a tax professional
This content has been reviewed by an Enrolled Agent (EA) with the IRS — the highest credential awarded by the agency. Enrolled Agents are empowered to represent all taxpayers before the IRS, on all types of tax-related matters. Accountants who earn this certification have passed a comprehensive three-part exam on individual and business tax returns. To maintain EA status, they must stay up to date in the field by completing 72 hours of continuing education every three years.
My name is Timothy Sheardy and I am tax and accounting professional from the Metro Detroit area. I have completed my Masters of Science in Taxation specializing in small business and self-employed and Bachelors of Arts in Accounting. As of 2020, I have been preparing taxes for 9 years and also have 10 years accounting experience with 6 of the using QuickBooks both desktop and online and 9 using Sage Peachtree I pride my business on working with clients. I believe a knowledgeable client will make better business decisions. The success of them and their business is most important.
August 2, 2024 February 14, 2023 Reviewed by a tax professional
This content has been reviewed by an Enrolled Agent (EA) with the IRS — the highest credential awarded by the agency. Enrolled Agents are empowered to represent all taxpayers before the IRS, on all types of tax-related matters. Accountants who earn this certification have passed a comprehensive three-part exam on individual and business tax returns. To maintain EA status, they must stay up to date in the field by completing 72 hours of continuing education every three years.
We know the thought of filing taxes makes most people want to run screaming from the room. And while there are definitely ways to make paying taxes easier, it’s still something most people would rather avoid.
Of course, you can’t just decide not to pay. But depending on your income, age, and filing status, you might not have to!
Let’s break down how much money you have to make to file taxes.
The first thing to consider is whether your income exceeds the income requirements. If it does, sorry, but you must file income tax.
These are the general filing requirements for the 2022 tax year (in other words, the taxes you’ll be paying in 2023). If your gross income is equal to — or higher than — the amounts listed below, you’ll need to file income tax.
| Filing Status | Under 65 | 65 or older |
|---|---|---|
| Single | $12,950 | $14,700 |
| Married (filing jointly) | Both spouses under 65: $25,900 One spouse under 65, one over: $27,300 | Both spouses 65 or older: $28,700 |
| Married (filing separately) | $5 | $5 |
| Head of household | $19,400 | $21,150 |
| Qualifying widow(er) | $25,900 | $27,300 |
Remember, these are the numbers for if you need to file your income tax — it doesn’t necessarily mean you owe money.
If all your earnings come from traditional W-2 jobs, then making less than the standard deduction would reduce your taxable income down to zero — meaning you don’t have to pay the IRS anything.
Even assuming your employer withheld taxes during the year, though, you might want to file a return anyway. That way, you can get some money back as a tax refund.
What the standard deduction means for Social Security recipients
The standard deduction works differently if your only income is from Social Security.
Social Security isn’t taxable unless you also have income from other sources. So even if you received more than the standard deduction amount in Social Security payments, you’re still exempt from filing.
There’s another group of taxpayers that have to deal with the opposite situation — they have to file even if they made less than the standard deduction.
We’re talking about self-employed people.
If you freelance, work on a 1099 contract, or own a small business, your filing requirement kicks in at a much lower income level. Whether it’s a full-time business or a casual side hustle, you must file taxes if you earn $400 or more in self-employment income.
Yes, you read that right. $400.
There’s a common misconception that you don’t have to file 1099 taxes if you make less than $600, but that’s not true. The actual limit is $200 lower.
Why the mismatch? Because "although related, these are completely separate functions," says Kristine Stevenson Seale, EA, a tax resolution specialist and author. "The $600 threshold reporting requirement is for the payer. The $400 threshold reporting requirement is for the payee," meaning the "sole proprietor, independent contractor, or self-employed person."
Even if you don’t think of yourself as self-employed, the government might. Self-employment income includes everything from working as a freelance writer, to selling crafts on Etsy, to delivering for GrubHub. Even being paid in cash to pet-sit your neighbor’s dog counts. Basically, any time you’re earning money for working outside of a regular W-2 job counts as self-employment.
Keep in mind, people with multiple side hustles need to "add up [income from] all their business ventures" to check if it's higher than $400, says Thomas Williams, EA, USTCP, a tax accountant and author. The tax filing threshold is "more likely to trigger in a multi=activity scenario," he explains.
As an example, pretend you earned:
The two gigs add up to $400, so you would have to file taxes.
Just because you’re reporting your self-employment income, it doesn’t mean you need to pay tax on all of it. Business write-offs can save you hundreds — if not thousands — of dollars a year on self-employment tax. The great news is, you can take them on top of the standard deduction.
Keeper automatically finds and deducts these expenses for you, saving self-employed people an average of $1,249 a year. Try it out, and you can make tax time easier than ever — maybe even so easy you won’t mind filing. (Which you can do right from the app!)
Self-employed people who expect to owe $1,000 or more also have another tax requirement to worry about: paying quarterly taxes.
How do you know how much you’ll owe in advance? We’re so glad you asked! Figuring out quarterly taxes gives people so much headache we created a free quarterly tax calculator to take the stress out.
Quarterly taxes are due on:
Still being claimed as a dependent on someone else’s taxes? You’ll have to deal with a set of different rules. Check out your tax filing requirements chart below.
| Dependent Status | Under 65 | 65 or older | 65 or older and blind |
|---|---|---|---|
| Single | Unearned income: $1,150 Earned income: $12,950 Gross income: $1,150, OR: earned income (up to $12,950), plus $400 | Unearned income: $2,900 Earned income: $14,700 Gross income: $2,900, OR: earned income (up to $12,550), plus $2,150 | Unearned income: $4,650 Earned income: $16,450 Gross income: $4,600, OR: earned income (up to $12,550), plus $3,900 |
| Married | Unearned income: $1,150 Earned income: $12,950 Gross income: $1,150 OR: earned income (up to $12,550), plus $400 | Unearned income: $2,550 Earned income: $14,350 Gross income: $2,550 OR: earned income (up to $12,550), plus $1,800 | Unearned income: $3,950 Earned income: $15,750 Gross income: $3,950, OR: earned income (up to $12,550), plus $3,200 |
If you earned more than the amounts shown, you must pay taxes as a dependent.
(Wondering how income can count as “unearned”? It’s just a fancy way of talking about income from interest, dividends, and capital gains — money that accrues without any extra work on your part!)
“Okay,” you’re saying to yourself, “I don’t make enough to have to pay taxes! That means I’m done, right?”
Not necessarily. You’ll still need to file if:
We know it sounds weird — why would you ever file taxes if you don’t have to, right? Well, how about when filing taxes earns you money?
It’s true: If you’re owed a refund from your W-2 withholding, overpaid your quarterly taxes, or qualify for one of the many refundable tax credits, you’ll only be able to collect if you file a return telling the IRS that it owes you money.
Here are some of the credits you’ll probably want to do your taxes for, even when you aren’t required to file:
| Tax credit | Maximum credit value |
|---|---|
| Earned income tax credit | $560 (without children) $6,935 (max with children) |
| Refundable child tax credit | $2,000 |
| Additional child tax credit | $2,000 |
| Refundable American opportunity tax credit | $2,500 |
| Health coverage tax credit | 72.5% of qualified health insurance premiums |
| Federal tax on fuels credit | Variable |
| Premium tax credit | Variable |
| Sick and family leave credits | $5,110 (sick leave) $10,000 (family leave) |
| Child and dependent care expenses credits | $3,000 (one qualified person) $6,000 (two or more qualified people) |
Just make sure you double-check your eligibility before claiming a refundable credit on your return. Falsely claiming credits can count as tax fraud, and can be a criminal offense.
Knowing when and when not to file taxes can be tricky, and the answer will be different for everybody. But unless you’re certain you don’t have to file, it’s generally better to be on the safe side and send in that return.
The last thing you want is to realize after the deadline that you were supposed to file — after all, being late on your taxes is no laughing matter.
Timothy Sheardy, MS, BBA
My name is Timothy Sheardy and I am tax and accounting professional from the Metro Detroit area. I have completed my Masters of Science in Taxation specializing in small business and self-employed and Bachelors of Arts in Accounting. As of 2020, I have been preparing taxes for 9 years and also have 10 years accounting experience with 6 of the using QuickBooks both desktop and online and 9 using Sage Peachtree I pride my business on working with clients. I believe a knowledgeable client will make better business decisions. The success of them and their business is most important.
Over 1M freelancers trust Keeper with their taxes
Keeper is the top-rated all-in-one business expense tracker, tax filing service, and personal accountant.
You Have to Make to File" />
You Have to Make to File" />
Over 1M freelancers trust Keeper with their taxes
Keeper is the top-rated all-in-one business expense tracker, tax filing service, and personal accountant.
