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You may not be obligated to file a tax return this year. But read on to see why you may want to anyway. [[{“value”:”
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For many people, filing taxes is a yearly obligation. But did you know that some people actually don’t have to file a tax return?
Filers with low incomes can generally get out of submitting taxes without being penalized for it. But even if you don’t have to file a tax return, you may want to for one big reason.
Who doesn’t have to file this year?
If you were under age 65 last year, you’re exempt from filing a 2023 tax return if your 2023 income was:
Under $13,850 as a single tax-filerUnder $20,800 as a head of householdUnder $27,700 as a married couple filing jointly where both members were under 65 in 2023 or a qualifying surviving spouseUnder $5 for a married person filing separately (this threshold apples regardless of age)
If you were 65 or older in 2023, you don’t have to file a 2023 tax return if your 2023 income was:
Under $15,700 as a single tax-filerUnder $22,650 as a head of householdUnder $29,200 as a married couple filing jointly where one member was 65 or older in 2023 or a qualifying surviving spouseUnder $30,700 as a married couple filing jointly where both members were 65 or older in 2023
Why you may want to file a tax return even if there’s no obligation to do so
Although you may not be obligated to file taxes, doing so could put money in your pocket if you’re eligible for a refundable tax credit.
As a reminder, a tax credit is a dollar-for-dollar reduction of your IRS liability. Some tax credits can’t do more than reduce your tax debt to $0. But a refundable tax credit could put money in your bank account, even if you owe the IRS nothing.
One refundable credit you may want to look into for 2023 is the Earned Income Tax Credit. Here’s what it takes to qualify for it and what the credit might pay you:
So let’s say that in 2023, you were single earning $13,000. That means you don’t have to file a tax return. But if you have no qualifying children in your household, that income means you qualify for the Earned Income Tax Credit and are eligible for a $600 payday. So all you need to do to get that money is file a tax return for 2023 and claim the credit.
You should also know that filers with an income of $79,000 or less are eligible to file their taxes for free via tax software. And if you have an income that’s low enough that exempts you from filing, you may also be eligible for no-cost assistance through the Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) Programs. So don’t write off the idea of submitting a tax return this year, because it could really end up benefiting your personal finances.
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