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Filing a tax return: When it’s required and when it’s worth it
Feb 21, 2025 5:27 AM

  

Filing a tax return: When it’s required and when it’s worth it1

  Do you need to file a tax return? Understand the rules and exceptions.© igorkol_ter/stock.adobe.com; Photo illustration Encyclopædia Britannica, IncFiling taxes can feel like a hassle, but not everyone needs to file a return. If you started a new job or are recently retired or unemployed, your income may be low enough that you’re not required to submit a return. Still, filing may be worth it—if taxes were withheld from your paycheck, you might be owed a refund. You may also qualify for certain tax credits, but you can claim them only if you file a return.

  When your income is high enough to require a tax returnThe Internal Revenue Service (IRS) requires most U.S. citizens or permanent residents who work in the U.S. to file a tax return. If you’re a single filer and your gross annual income (the amount earned before taxes and other deductions) was less than $14,600 in 2024 ($16,550, if you are 65 or older), filing a return isn’t necessary. For other filing statuses, the gross income amounts exempt from filing a return range from $21,900 to $32,300. (Watch out if you are married and filing separately—once you make $5 in income, you must file.)

  

Income thresholds for filing a tax return
Filing status Age as of Dec. 31, 2024 Filing a tax return is required

if your gross income is at least:

Single Under 65 $14,600
Single 65 or older $16,550
Head of household Under 65 $21,900
Head of household 65 or older $23,850
Married filing jointly Under 65 (both spouses) $29,200
Married filing jointly 65 or older (one spouse) $30,750
Married filing jointly 65 or older (both spouses) $32,300
Married filing separately Any age $5
Qualifying surviving spouse Under 65 $29,200
Qualifying surviving spouse 65 or older $30,750
Other situations that require you to file a tax returnEven if you make less than the filing income thresholds, certain situations may require you to file a return with the IRS.

  Self-employment—if your net earnings after business expenses were $400 or more.

  HSA or MSA distributions—if you or your spouse (when filing jointly) had withdrawals from a health savings account (HSA), Archer medical savings account (MSA), or Medicare Advantage MSA.

  Church wages—if you were paid $108.28 or more by a church or similar organization exempt from employer Social Security and Medicare taxes.

  Health insurance marketplace—if you received a Form 1095-A for advance payments of health insurance marketplace tax credits.

  “Clean vehicle” purchase—if you bought an electric, fuel cell, or plug-in hybrid vehicle and transferred the tax credit to the dealer at the time of sale.

  Investment income—if you received a Form 1099-B for broker or barter proceeds that, when added to your gross income, puts you over the filing threshold.

  U.S. citizens living abroad—if your income exceeds IRS thresholds, although certain exclusions or credits may reduce or eliminate what you owe.

  Residents of Puerto Rico—U.S. income thresholds generally apply. The IRS has a tax guide for Puerto Rico residents and those with income from U.S. territories.

  Alternative minimum taxAdditional tax on an individual retirement account (IRA) or other qualified retirement planFederal Insurance Contributions Act (FICA) tax on tips or other wages, group-term life insurance, or HSAs not shown on your W-2Household employment taxesRecapture taxes (amounts owed to the government because of a special lower-interest mortgage)Why filing a tax return could benefit you, even if it’s not requiredIf you had federal income tax withheld from your paychecks—or made estimated payments—and are owed a refund, you’ll need to file a return to get your money back, even if your income is lower than the threshold.

  And if you qualify for refundable tax credits, filing a return could result in a refund beyond any taxes you paid.

  Earned income credit (EITC): Provides refunds to low- and moderate-income earners who have children or meet other criteria. The IRS provides an EITC assistant that can help you determine if you qualify. Additional child tax credit: A refundable portion of the child tax credit targeted toward low-income families that’s worth up to $1,700 for each qualifying child. Use IRS Form 8812 to see if you qualify.American opportunity tax credit (AOTC): Applies to qualified education expenses during the first four years of higher education, up to $2,500 for each student. Even if you owe no taxes, you may still be eligible for a refund of up to $1,000. Premium tax credit (PTC): Available if you purchased health insurance through the health insurance marketplace. The IRS Taxpayer Advocate Service website features an estimator to determine eligibility. The bottom lineNot sure if you need to file a tax return? The IRS interactive tax assistant can help. When in doubt, it’s worth filing—or at least completing the form. You might discover you’re owed money.

  If your adjusted gross income (AGI) is $84,000 or less, you can file for free using IRS Free File. 

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