Did you know that the minimum amount to file taxes is usually $3,000, but it can be lower? If you or you and your spouse combined make a total of at least $3,000 from regular wages in a given year (Jan. 1- Dec. 31) you will need to file an income tax return the following year, by the April deadline. But there are also other circumstances in which you’ll need to file taxes on lower earnings, such as one of the following:
- If you earned self-employment income of at least $400, through side jobs, freelancing or other non-wage situations, you will need to report this income by filing taxes. You likely won’t owe much income tax on it, and may even receive a refund, depending on other factors.
- Money earned from tips not reported to an employer, no matter the amount, need to be noted when you file your tax return. If you earned money from tips and did not pay social security or medicare (FICA) on these earnings, you have made enough money to file taxes.
- Those who received advanced Earned Income Credit (EIC) payments will need to file taxes and account for those credits, to ensure they were properly distributed.
- If federal taxes were withheld from your paycheck, and you are owed a refund on this witholding, you will need to file taxes to receive the money owed to you.
- If there is a government stimulus package or if economic stimulus checks are being mailed to taxpayers, you will need to file taxes to receive your check.
Thus while how much money you have to make to file taxes is $3,000 when the money comes from wages, certain other criteria may lower that threshold, and filing taxes can be beneficial under other circumstances as well.