How do I know if I need to file a tax return?

by | Apr 22, 2025 | General Federal Filing, Individual Taxes

Here’s what HIVE AI had to say about “How do I know if I need to file a tax return?”:

How to Determine if You Need to File a Tax Return

General Filing Requirements Based on Income

Whether you need to file a federal tax return primarily depends on your gross income, filing status, age, and other specific factors. According to IRC § 6012(a), returns with respect to income taxes under subtitle A shall be made by individuals having gross income that equals or exceeds the exemption amount for the taxable year. IRC § 6012(a)

Section 6012 identifies persons who are required to file income tax returns. Under Treasury regulations, taxpayers who receive more than the statutory minimum amount of gross income must file income tax returns. Notice 2005-30 Taxpayers are also required to pay any tax owed. Notice 2005-30

Whether you have to file a tax return depends on your filing status, age, and gross income. If you are married, you have the option to file either a joint return or a separate return. IRS – Publication 3865: Tax Information for Survivors of Domestic Abuse

Filing Status Considerations

You must determine your filing status before you can determine whether you must file a tax return, your standard deduction, and your tax. You also use your filing status to determine whether you are eligible to claim certain other deductions and credits. There are five filing statuses: • Single • Married filing jointly • Married filing separately • Head of household • Qualifying widow(er) with dependent child IRS – Publication 501: Dependents, Standard Deduction, and Filing Information

Specific Situations Requiring Filing

Even if your income is below the threshold that would normally require filing, you may still need to file a return in certain situations:

  • If you have net earnings from self-employment of $400 or more for the taxable year, you must make a return of such earnings. A return is required if an individual has self-employment income, as defined in section 1402(b), even though they may not be required to make a return under section 6012 for purposes of the tax imposed by section 1 or 3. Tresuary Reg. 1.6017-1 Tresuary Reg. 1.6017-1
  • You need to file if you have any of the following income:
    • Net earnings from self-employment of at least $400
    • Wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from employer Social Security and Medicare taxes
    • Tips you did not report to your employer or wages you received from an employer who did not withhold Social Security and Medicare taxes IRS – Publication 4696 (PR): VITA/TCE Puerto Rico Resource Guide
  • Taxpayers meeting requirements to file Form 8606 (for IRA distributions) must file the form even if they do not file a tax return for the tax year. IRS IRM 21.6.5 Individual Retirement Arrangements (IRA), Coverdell Education Savings Accounts (ESA), Archer Medical Savings Accounts (MSA) and Health Savings Accounts (HSA)
  • If you’re claiming treaty benefits that modify U.S. tax provisions, you must file a disclosure statement. If a return of tax would not otherwise be required to be filed, a return must nevertheless be filed for purposes of making the required disclosure. For this purpose, such return need include only the taxpayer’s name, address, taxpayer identifying number, and be signed under penalties of perjury (as well as the subject disclosure). Tresuary Reg. 301.6114-1
  • The Secretary shall require any person claiming tax benefits under the provisions of sections 34, 40, and 40A, to file a return at the time such person claims such benefits (in such manner as the Secretary may prescribe). IRC § 4104(a)
  • For gift taxes, a return is required even though, because of the deduction authorized by section 2522 (charitable deduction) or the unified credit under section 2505, no tax may be payable on the transfer. Tresuary Reg. 25.6019-1

Filing Requirements for Dependents

If you’re claimed as a dependent on someone else’s return, you can be claimed as a dependent and still need to file your own tax return. Your filing requirement depends on your income, marital status and other criteria. IRS – Dependents

When You Should File Even If Not Required

You may want to file anyway so you can get any federal income tax your employer withheld back as a refund or claim certain refundable tax credits. IRS – Dependents

You should consider filing if all of the following apply: • You received a Form 1099-B, Proceeds From Broker and Barter Exchange Transactions (or substitute statement) • The amount in box 1d of Form 1099-B (or substitute statement), when added to your other gross income, means you have to file a tax return because of the filing requirement • Box 1e of Form 1099-B (or substitute statement) is blank In this case, filing a return may keep you from getting a notice from the IRS. IRS – Publication 501: Dependents, Standard Deduction, and Filing Information

What Constitutes a Valid Return

To be considered as having filed a return, a taxpayer must have filed a valid return. Under Beard v. Commissioner, a valid return is one that:

A taxpayer who files a document that purports to be a Federal income tax return but which contains only zeros on the relevant lines has not filed a valid return because it does not contain sufficient information for the Commissioner to calculate and assess a tax liability. Dawson U.S. Tax Court Opinions: Steven T. Waltner & Sarah V. Waltner

Common Misconceptions About Filing Requirements

Nothing in the Internal Revenue Code directly imposes a requirement to file a return. However, Section 6011 expressly authorizes the Service to require, by Treasury regulation, the filing of tax returns. Notice 2005-30

Some people mistake the word “voluntary” for “optional” — but filing a tax return is not optional for those who meet the law’s minimum gross income requirements. The word “voluntary,” as used in IRS publications and elsewhere, refers to the fact that the U.S. tax system is a voluntary compliance system. This means only that taxpayers themselves determine the correct amount of tax and complete the appropriate returns, rather than have the government do this for them as is done in some other countries. This system of self-reporting does not make the filing of tax returns or the payment of tax voluntary. For those who do not comply with this system and fail to self-report their tax liability, the tax law authorizes various enforced compliance measures. Notice 2005-30

How the IRS Determines if You Need to File

When responding to taxpayer contacts, the IRS will determine if the taxpayer is required to file a tax return and instruct them to complete the required return. IRS IRM 5.19.2 Individual Master File (IMF) Return Delinquency

If a taxpayer states they had expenses (i.e., against business income) or a cost basis (i.e., against stock sales) that lowers their total income, the IRS can accept this information via telephone or in correspondence (without a return) ONLY to compute the potential total tax liability and determine if there is a Refund Due or the tolerance amount was met for “Minimal” or “No” tax due per Policy Statement P-5-133. However, the IRS will inform the taxpayer they are still required to file a return if determination shows a refund due or minimum or little or no tax due. IRS IRM 5.19.2 Individual Master File (IMF) Return Delinquency

Conclusion

To determine if you need to file a tax return, consider these key factors:

  • Your gross income in relation to the filing threshold for your filing status and age
  • Whether you have self-employment income of $400 or more
  • Whether you’re claiming special tax benefits or credits
  • Whether you had federal income tax withheld that you want refunded
  • Whether you’re eligible for refundable credits

If you’re still unsure whether you need to file, the IRS provides an interactive tax assistant tool on their website that can help you determine your filing requirement based on your specific situation. You can also consult with a tax professional for personalized advice.

Remember that even if you’re not required to file, it may be beneficial to do so if you’re due a refund or eligible for refundable credits.

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