Typically the minimum amount of money you need to make in order to file income taxes is $3,000. However there are other instances in which you will have to file for taxes on lower earnings.
Freelance Work Or Independent Contractor
If you have earned money through freelance jobs, side jobs, or other non-wage earnings, you have to report earnings if you receive at least $400 in any one of these instances. For example, if you earn money through a side job and you earn a at least $400 between January 1 and December 31, you will need to pay taxes on that amount the following year. Chances are you won’t have to pay much, but you still need to file. If you are a freelance worker, it is essential to keep precise accounts of how much money you make for each job.
Money From Tips Needs To Be Taken Into Consideration
Take any tips into consideration that you receive from a bartending job, a waitress job, or any other job where tips make up part of your income. If you get tips that you do not declare to the person who employs you, you will need to file taxes on them.
Earned Income Credit
If you get an advanced Earned Income Credit, or EIC, you will need to file for taxes to account for those credits. This is to make sure that they were distributed properly.
Income From Social Security
Income from your job does not include the money you get from Social Security benefits. If you get Social Security benefits you will not have to file for taxes on them unless half of your Social Security benefits is equal to more than $25,000.
Other Situations That Will Require You To File Income Taxes
There are other instances where you have to file a tax return. These instances include the following:
If you owe an Alternative Minimum Tax
If you owe taxes on an Ira
If you received income from a church or church organization that is in the amount of $108.28
If you or a nonresident alien receiving an income from a business or trade in the United States
If you have on earned income that is more than $950 and someone else claims you as a dependent
If you have earned income that is more than $5,700 and someone else claims you as a dependent
So even though you make the minimum amount of money in order to pay taxes, there are other instances in which you will have to file. If you are unsure whether or not you have to file income taxes, it is best to ask a CPA or other tax professional. It’s better to be safe than sorry when it comes to income taxes.
About the Author:
By: Wayne L
Interested in tax related articles? Find out how to get free state income tax filing with 5 tax prep alternatives.
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