Minimum income to file taxes in 2023: Not everyone needs to file

Medora Lee, USA TODAY
·5 min read

Not everyone is required to file taxes, but most Americans are and likely will file taxes.

Of the 176.2 million individuals and married couples who could file a tax return in 2020, about 144.5 million of them did, according to nonpartisan Washington think tank the Tax Policy Center. Whether you need to file your taxes depends mostly on your income, filing status and age. In special situations, you may have to file a tax return regardless of your income, though. For example, if you have net earnings of at least $400 from self-employment, you’re required to file taxes.

Having said that, even if you’re not required to file a tax return, you may want to file to claim tax credits and overpayments that could result in money being returned to you.

This may sound confusing, but we’ll explain it all here so you can stay within the law or even reap some benefits for putting in a little unrequired work.

Important things: Are you ready to file your taxes? Here's everything you need to know to file taxes in 2023.

What is the minimum income to file taxes in 2023?

To determine if you’re one of the millions who have to file a return, start with your gross income, which is total income before taxes and adjustments, and your age and filing status. Filing status refers to if you’re single, married filing jointly or separately, head of household or a widow(er).

Depending on your age and filing status, the IRS has minimum income thresholds that determine whether you must file a tax return. Here are the breakdowns:

Single filing status: 

  • $12,950 if younger than 65

  • $14,700 if 65 or older

Married filing jointly: 

  • $25,900 if both spouses are younger than 65

  • $27,300 if one spouse is younger than 65 and one is 65 or older

  • $28,700 if both spouses are 65 or older

Married filing separately:

  • $5 for all ages

Head of household: 

  • $19,400 if younger than 65

  • $21,150 if 65 or older

Qualifying widow(er) with dependent child: 

  • $25,900 if younger than 65

  • $27,300 if 65 or older

If you to file: Is it better to pay someone to do your taxes or do them yourself? We'll help you decide.

Stay focused: Tax season 2023 officially started: Here are key deadlines to keep in mind

People with “special situations” may have to file a tax return regardless of income. Some of these situations include:

1. You owe any special taxes, such as:

  • Alternative minimum tax, which is generally for very high income taxpayers.

  • Additional tax on a qualified plan, including an individual retirement account (IRA) or another tax-favored account.

  • Social Security or 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, Medicare or railroad retirement tax on tips you reported to your employer or on group-term life insurance and additional taxes on health savings accounts.

  • Household employment taxes.

  • Recapture taxes, which is paying back the federal government for benefits of using tax-exempt mortgage bonds for financing.

2. You (or your spouse, if filing jointly) bought health insurance from a state or federal marketplace or received health savings account 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’s exempt from employer Social Security and Medicare taxes.

Note: If you can be claimed as a dependent on someone else’s tax return, your tax filing requirements are different.

If you’re still stumped, use the IRS’ interactive tool to help you determine if you need to file a tax return.

Know which statements to include when filing taxes this spring.
Know which statements to include when filing taxes this spring.

Should I file a tax return even if I’m not required to?

If you think you can get money back, yes. Consider filing if any of the following apply:

  • You had income tax withheld from your paycheck. You can get a refund of that amount.

  • You overpaid. For example, if you made estimated tax payments or had any of your overpayment for last year applied to this year's estimated tax, you might be due money back.

  • Earned income tax credit (EITC). You may qualify for this refundable credit, meaning even if you do not owe taxes, you can still get a refund. Lower-income workers may be eligible for an EITC of $510 to $6,318, depending on income and number of children, but you don't need to have children to be eligible.

  • Additional child tax credit. If you qualify, you can receive up to $1,500 of the $2,000 child tax credit per child as a refund.

  • American opportunity credit. If you qualify for this tax credit to help pay for post-high school education expenses, you can get a maximum annual credit of $2,500 per eligible student and 40% or $1,000 could be refunded if you owe no tax.

  • Premium tax credit. If you qualify, you can get a refund on this credit that helps eligible individuals and families cover the premiums for their health insurance purchased through the health insurance marketplace. 

Even if you don't have a refund due, the IRS recommends  filing a tax return if you received a 1099-B, which has information about securities or property involved in a transaction handled by a broker, to avoid getting a notice from the agency.

More of your 2022 tax season questions answered

Medora Lee is a money, markets and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.    

This article originally appeared on USA TODAY: How much do you need to make to file taxes in 2023?

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