How Much Income Do You Have To Make To File Taxes

The income level varies for filing a return depending on age, marital status and type of employment.

According to the Tax Policy Center, about 42 percent of total government revenues came from individual income taxes for a total of over $924 billion in 2010. The income thresholds for filing a tax return are adjusted annually to reflect inflation as well as changes in the standard deduction and personal exemptions.

Types

There are different thresholds for filing, depending on the type of income you have. If you are employed by a company, your filing thresholds are significantly higher than if you are self-employed or employed by a church that is exempt from employer Social Security or Medicare taxes. In 2012, if you had self-employment income of $400 or more or income from a church totaling more than $108.28, you were required to file a return.

Considerations

If you are an employee, your income threshold to file taxes depends on your filing status and age. The five filing statuses are single, head of household, married filing jointly, married filing separately and qualifying widower with a dependent child. The threshold for people age 65 and older is increased for all filing statuses except married filing separately, which remains at $3,800 no matter what your age.

In 2012, singles were required to file if they made at least $9,750. If you were 65 or older, the threshold was $11,200. If you file a joint return with your spouse, the limit was $19,500. For each spouse who is 65 or older, the threshold increased by $1,150. Heads of household under 65 were required to file if they made more than $12,500; the limit went up to $13,950 for those over 65. Qualifying widows and widowers were required to file at $15,700 if younger than 65 and $16,850 if older.

Misconceptions

Being 65 or older gives you a higher income threshold before you have to file taxes, but being a minor or a dependent does not exempt you from having to file. According to the Internal Revenue Service (IRS), children who meet the income requirements must file a return regardless of their age. If the child is unable to file, the responsibility falls to the parent or guardian.

History

The 16th Amendment gave the federal government the ability to institute an income tax on all citizens. The first income tax was significantly different from the taxes that are paid today. Only the richest 1 percent of citizens paid any tax at all, and the top income tax rate was only 7 percent. In 2011, about 46.4 percent of American households did not pay any federal income taxes, and in 2012, the top income tax rate was 35 percent.

Benefits

If you are not required to file an income tax return because your income does not exceed the filing threshold, you might still want to file in certain cases. If you had taxes withheld from your paychecks during the year, you must file a return to get the money back. In addition, if you are eligible for refundable credits, such as the earned income credit, you should file a tax return to receive a refund check.

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