Tax Filing Limit
In the US, almost everyone is required to file a tax return with the exception of those who qualify on the basis of income or disability. Some types of income, such as social security, disability, or SSDI and SSI, as well as VA benefits, are not considered as income. If you want to know whether or not you are required to file, there are nonprofits who can help you. So please consult a professional before not filing a return. Please read on to find out important information about the tax filing limit and the income limit to file taxes.
What Is The Tax Filing Limit?
The tax filling limit is the minimum amount of money you need to make in order to file taxes, and that number changes from year to year. For 2017 the threshold was $10,400 for an individual who is pre 65. For an individual 65 plus, the income limit was $11,950. For married people filing separately, it was $4,050 regardless of age. For married couples filing jointly and pre 65 was $20,800 and $22,050 if one spouse was 65 plus. If both spouses are 65 plus then the threshold was $23,300. If you were claiming head of household the limit was $13,400 if you are pre 65 and $14,950 if you were 65 plus. Lastly, if you were a qualifying widow/widower with dependent children it was $16,750 if you were pre 65 years old and $18,000 if you were past 65 years old.
What Is The Current Income Limit To File Taxes?
If you earn more than the figures stated above then you are required to file a return on your taxable income so long as it is above the threshold. Examples of taxable income are the following Taxable earned income includes:
- Wages and other compensation received as an employee.
- Union payments due to a strike.
- Long-term disability received prior to turning 65 years old.
- Net earnings from self-employment if you are a farmer or minister.
Examples of non-taxable income are the following:
- Inheritances, gifts, and bequests.
- Cash rebates on items you purchase from a retailer, manufacturer or dealer.
- Child support received.
- Most healthcare costs provided by the employer.
- Qualifying adoption costs incurred during the process.
- State welfare payments.
Of course, this list is not extensive and it is always best to consult a tax professional for advice. Many organizations offer free assistance during tax time.
Tax Filing Limits For Dependents
Having a dependent can be tricky when it comes to filing a tax return the following is true for dependents.
If you are a single dependent who is neither blind nor over 65, you must file a return if your unearned income was more than $1,050 or your earned income was more than $6,350. You also must file if your gross income was larger than $1,050.00 and if your earned income was up to $6,000 plus $350.
If you are a single dependent who is either blind or past sixty-five you must file a return if your unearned income was more than $2,600 ($4,150 if 65 plus and blind). Your earned income was more than $7,900 ($9,450 if 65 plus and blind). Moreover, if your gross income was more than the larger of $2,600 ($4,150 if 65 plus and blind), or Your earned income (up to $6,000) plus $1,900 ($3,450 if 65 plus and blind).
If you are a married dependent then you must file if any of the true is following. Your gross income was a minimum of $5 and your spouse files a single return and itemizes deductions. This is your tax filing limit. Your unearned income was more than $1,050. Your earned income was more than $6,350. Your gross income was more than the larger $1,050, or Your earned income (up to $6,000) plus $350.
As you can see there is a lot of complexity surrounding the income limit to file taxes, but we hope this information will help you to ascertain if you are in the income limit to file taxes by observing the filing thresholds.
Special Tax Filing Thresholds Over 65 And Blind
Publication 554 (2017), Tax Guide for Seniors is a great guide for any senior or blind person who needs the guidance on the subject of income limit to file taxes and their tax filing limit. As aforementioned in this article there are special filing thresholds for people in this position and generally, they are required to still file a return regardless of the age or disability. With the IRS, the bottom line is money.