Whether or not to file taxes is a complicated question. The most important thing is how much you earn during the year. The team at Tax Crisis Institute is here to help you with your tax filing difficulties. We can answer your questions and will help you through your current tax problems.
What you need to know is that by filing tax forms, even if it is late, you put certain protections in place for yourself and your assets.
How Much Do I Have to Make to File Taxes?
The minimum income requirement for filing taxes varies for the year you are filing for and is based on your:
- Filing Status: Single/Married (filing jointly or separately); Head of Household; Widow/Widower
- Age: separated by under 65 or 65 and older
- Gross Income: total income not exempt from tax.
- The minimum income requirement for filing varies according to the year you are filing for.
How Much Money Can I Make And Not Pay Taxes?
The minimum earnings required for filing vary each year. For example, in 2018 it ranged from less that $5 (not an error) for a status of Married Filing Separately to less than $26,600 for a status of Married Filing Jointly with both spouses 65 or older.
You will need to check for the year you are filing for; not the year in which you are filing.
Do I Have to Report Income From a Side Job?
You are required to report all taxable income from side work, freelance jobs, and income you receive from all other sources. Not receiving a 1099-MISC does not excuse you from reporting the income.
However, you would be wise to record all expenses related to side jobs as they are usually deductible.
How Many Months Do I Have to Work to Claim Taxes?
The amount of time you worked is not a factor in the need to file. The requirement to file is based on the amount of taxable income you earned during the year. Another factor to consider is if you are claimed as a dependent by someone else.
What Happens if I Never File Taxes?
The IRS has the right to file a Substitution for Return without taking into account any deductions you are entitled to. This can be done for each year you failed to file taxes. This leaves you with full liability for all taxes owed.
Not filing taxes can lead to other difficulties:
- Non-reporting of income for Social Security purposes reduces your benefits in the future.
- Subject to up to 5 years in prison and up to $250,000 in fines
- The collection of back taxes along with interest and substantial penalties.
If you have unfiled taxes from previous years, Tax Crisis Institute is here to assist you in preparing those returns.
What Happens if I Don’t File Taxes and I Owe Money?
Failure to file allows the IRS to attempt to collect at any time for years you did not file and could lead to prison time.
However, once you file there is a time limit of 10 years for the IRS to collect taxes owed. As stated above, the IRS can proceed to collect taxes with penalties and substantial interest. You can end up owing more in penalties and interest that the original tax amount had you chosen to file.
The IRS has the power to attach your bank accounts, garnishee your wages, put liens against your property and have you put in jail due to failure to file.
What Age Can I Stop Filing Income Taxes?
Age has less to do with whether you need to file than what your gross taxable income is. Generally, if Social Security is your only income source you may not need to file.
If you have additional income not exempt from taxation, you will need to find out what is the minimum income required for filing taxes. This total can change each year. For reference purposes, the minimum income in 2019 for seniors not married was $13,850, and seniors married filing jointly $27,000.
A financial advisor can help you identify sources of retirement income that are subject to being taxed.
Do I Have to File Taxes if I Have No Income?
If you have no income or income that is less than the IRS minimum for filing it may.not be necessary for you to file. The minimum income requirement varies according to age (under 65/65 and older) and filing status (Single/Married; filing jointly or separately; Head of Household; Widow/Widower).
If you have earned money through self-employment you are always required to file and to pay self-employment tax.
There are advantages to filing even if you fall below the minimum required income.
- If you fall below the minimum required income for filing you can potentially receive a refund even if you did not pay taxes. The IRS gives “additional child tax credit” and “earned income credit” which can show up as a refund for you. However, you cannot receive a refund unless you file your taxes for the year.
- Some deductions are limited by the IRS. But if your deduction is more than the amount allowed, you can carry some deductions over to future years.
- You also can help reduce the chance of being audited. The IRS can only go back three years on properly filed returns. Timely filing each year helps protect against being audited later. The IRS can choose to audit you at any time for years you did not file.
Contact us Today
Tax Crisis Institute has a team of knowledgeable professionals who are equipped to assist you with your tax difficulties. Please contact us today to get started resolving your tax filing issues. We can’t wait to help you!