Do You Have to File?

Gross income test, dependent, and other situations.

Child Tax Credit is one good reason to file your income taxes each year.

That's a great question! However, the answer is not as simple as you might think. The federal income tax filing requirements for 2023 are well documented inside the Form 1040 instructions. The problem is that there are a lot of exceptions that you might have to sort through.

Do you have to file? asks the IRS from inside the instructions. Use Chart A, B, or C to see if you must file a return. Asterisk, double asterisk, triple asterisk. See Pub 570. See Tax Topic 901. Tip, even if you do all that - the instructions continue, and your head starts to hurt.

How Much Do You Have to Make?

The first chart (Chart A) that the Form 1040 instructions refer to is what's commonly called a Gross Income Test. Gross income means worldwide income including gains from the sale of your home and other taxable asset transactions. Gross income includes gains, but not losses, and ignores most business related expenses.

The gross income test does not suggest that you will be taxed on all of your income. It just means that you have to file an income tax return if your income is greater than or equal to these amounts. Compare your income to the minimum requirement by filing status for 2023 below to determine if you have to file.

Minimum Gross Income By Filing Status

  • Single
    • $13,850 under age 65
    • $15,700 age 65 or older
  • Married Filing Jointly
    • $27,700 under age 65 (both spouse)
    • $29,200 age 65 or older (one spouse)
    • $30,700 age 65 or older (both spouse)
  • Married Filing Separately
    • $5 under age 65
    • $5 age 65 or older
  • Head of Household
    • $20,800 under age 65
    • $22,650 age 65 or older
  • Qualifying Surviving Spouse
    • $27,700 under age 65
    • $29,200 age 65 or older

Reading from the list above, if your filing status was Single and you are under the age of 65, you have to file a tax return if your gross income was at least $13,850. If your Form 1040 filing status was Married Filing Jointly and both spouse where under the age of 65, you have to file a tax return if your gross income was at least $27,700. The minimum income filing requirements are higher for those who are over the age of 65. See the Form 1040 instructions, Chart A, for more details regarding the minimum income requirement.

Can Someone Claim You As A Dependent?

If someone can claim you as a dependent then you will need to read through the second chart. The second chart that the Form 1040 instructions refer to (Chart B) highlights the rules for dependents. A dependent is a child or relative who relies on you for financial support. If your parent or someone else can claim you as a dependent, answer the questions below to see if you have to file a return for 2023.

Single Dependents

Question: Were you either age 65 or older or blind?

No. You must file a return if any of the following apply:

  • Your unearned income was over $1,250.
  • Your earned income was over $13,850.
  • Your gross income was more than the larger of -
    • $1,250, or
    • Your earned income (up to $13,450) plus $400.

Yes. You must file a return if any of the following apply:

  • Your unearned income was over $3,100
    (if 65 or older and blind $4,950).
  • Your earned income was over $15,700
    (if 65 or older and blind $17,550).
  • Your gross income was more than the larger of -
    • $3,100 ($4,950 if 65 or older and blind), or
    • Your earned income (up to $13,450) plus $2,250 ($4,100 if 65 or older and blind).
 

Married Dependents

Question: Were you either age 65 or older or blind?

No. You must file a return if any of the following apply.

  • Your unearned income was over $1,250.
  • Your earned income was over $13,850.
  • Your gross income was at least $5 and your spouse files a separate return and itemizes deductions.
  • Your gross income was more than the larger of -
    • $1,250, or
    • Your earned income (up to $13,450) plus $400.

Yes. You must file a return if any of the following apply.

  • Your unearned income was over $2,750
    (if 65 or older and blind $4,250).
  • Your earned income was over $15,350
    (if 65 or older and blind $16,850).
  • Your gross income was at least $5 and your spouse files a separate return and itemizes deductions.
  • Your gross income was more than the larger of -
    • $2,750 ($4,250 if 65 or older and blind), or
    • Your earned income (up to $13,450) plus $1,900 ($3,400 if 65 or older and blind).

For the questions above, unearned income includes taxable interest and ordinary dividends, and capital gains. It also includes taxable social security benefits, unemployment compensation, annuities, pensions, and unearned income from trust distributions. Earned income generally includes W-2 salaries, wages, tips, professional fees, taxable scholarships and fellowship grants. Gross income is the total of your unearned and earned income.

Exceptions can be made for certain children under age 19 or those who are full-time students. If the specific conditions are met, you can elect to include the income of your child or full-time student on your tax return. See Form 8814 for more information about this filing requirement for dependents.

Examples of Other Situations

The third chart that the Form 1040 instructions refer to (Chart C) highlights other notable situations. For most people the combination of the three charts is probably enough. Keep in mind there could be other filing requirements that are not listed here or in the Form 1040 instructions. Many of these filing requirements are specific to particular tax forms and tax credit programs. You must file a 2023 federal tax return if any of the other situations listed below apply to you.

Other Situations When You Have to File

You must file a return if any of the conditions below apply.

  1. You owe any special taxes, including any of the following (see the instructions for Schedule 2).
    • Alternative minimum tax.
    • Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account.
    • Household employment taxes.
    • Social security and Medicare tax on tips you didn't report to your employer or on wages you received from an employer who didn't withhold these taxes.
    • Uncollected social security and Medicare or RRTA tax on tips you reported to your employer or on group-term life insurance and additional taxes on health savings accounts.
    • Recapture taxes.
  2. You (or your spouse if filing jointly) received health savings account, Archer MSA, or Medicare Advantage MSA distributions.
  3. You had net earnings from self-employment of at least $400.
  4. You had wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes.
  5. Advance payments of the premium tax credit were made for you, your spouse, or a dependent who enrolled in coverage through the Marketplace. You or whoever enrolled you should have received Form(s) 1095-A showing the amount of the advance payments.
  6. You are required to include amounts in income under section 965 or you have a net tax liability under section 965 that you are paying in installments under section 965(h) or deferred by making an election under section 965(i).

What About Credits and Refunds?

Charts A, B, and C do a good job of identifying those who must legally file a federal income tax return. There still might be other reasons why you should consider filing an income tax return. You should file an income tax return to benefit from any available tax credits. To get a refund on any federal income tax withheld (W2) or estimated tax payments (1040-ES) made. Or to carry forward unused credits from prior years, those are equally good reasons to file.

Consider filing a tax return even if you don't have to for these reasons:

Filing your taxes can also be an authoritative way to document your income, place of residence, and family members each year. Immigration, banking, student loan applications, marriage, and divorce are a few more reasons to consider filing even if you are below the minimum income amount required. Many government and banking like application processes will request copies of your last three years of income tax returns, for example. Finally, there is no statute of limitations for assessing and collecting income tax due if no return has been filed. Filing your taxes can become a way to put those tax years behind you for good.

Last updated: November 9, 2024

Federal Tax Forms

References: