Do I Need To File A Tax Return? – Forbes Advisor

You may have no reason to get worked up over getting your taxes done. Because you may not need to file a tax return for 2022.

This may be the case if you didn’t earn enough money, relied mostly on Social Security income or were unemployed for an extended period.

If your income didn’t go over certain income thresholds determined by the IRS, you could skip filing a federal tax return. The thresholds vary depending on your age, filing status and the kind of income you received.

However, you may want to file even if it’s not required if you have a chance of getting a refund from the IRS.

Here’s how to determine if you need to file a 2022 tax return in 2023.

Do I Need To File Taxes for 2022?

Whether you’re required to file depends on your income, filing status and other factors. Generally, you must file a tax return if your gross income for 2022 exceeded the threshold for your filing status below:

• Single filers, $12,950
• Married filing jointly, $25,900
• Head of household, $19,400

If you and/or your spouse was age 65 or older during the 2022 tax year, the thresholds are higher, starting at $14,700 for single filers and $27,300 for those married and filing jointly.

According to the IRS definition, gross income encompasses all forms of money, goods, property and services—including the sale of your home.

Filing Requirements for Dependents

You may not need to file a tax return if you’re claimed as a dependent on someone else’s return. But it depends on your age, your filing status, whether you had earned or unearned income, and whether you are legally blind.

A dependent who is single and has only earned income—including salaries, wages and tips—to report for 2022 is not required to file unless their income exceeded $12,550 ($14,250 if age 65 or older or legally blind). The threshold is the same for a married couple who files jointly, but it drops to $13,900 if one spouse is 65 or older or legally blind.

Here’s an example of how the filing requirement for dependents works: Michael is 15 and his mother claims him as a dependent. During 2022, he earned $11,000 in wages by working part time at a supermarket. He had no additional income.

Michael does not need to file a tax return because his income was less than $12,550 for the year.

If a dependent had only unearned income—including taxable interest, ordinary dividends, unemployment compensation and taxable Social Security benefits—the income threshold is greatly reduced. A tax return is required for income above $1,100 for both married and single dependent filers, though the threshold increases for those who are legally blind or age 65 or older.

A dependent who typically files a married-filing-separately tax return must file if they have more than just $5 of unearned or earned income and their spouse itemizes deductions.

Who Else Doesn’t Need To File Taxes?

Some people aren’t required to file a tax return because of the way taxable income is calculated, says Nell Curtis, an accounting instructor at Milwaukee Area Technical College in Wisconsin.

“Sometimes this is because their income is below certain thresholds or because of the types of income they have,” Curtis says. “For instance, Social Security is subject to tax limitations, so if that is someone’s primary income source, he or she might not need to file a tax return.”

There are exceptions to this rule. Taxpayers who earn less than those amounts might be required to file if specific situations apply to them, such as the need to pay special taxes or if the taxpayer has received net self-employment earnings of $400 or more, Curtis says.

Reasons To File Even If You Don’t Have To

Even if you’re not required to file a tax return for 2022, it might be wise to do so anyway. Here are a few reasons.

To Claim a Refundable Tax Credit

You should file a return if you’re expecting a tax refund or if you qualify for a refundable tax credit, including the earned income credit, additional child tax credit and American opportunity credit, says Brent Lipschultz, a partner and CPA at New York-based tax and accounting firm EisnerAmper.

Refundable tax credits can generate a refund even if you don’t owe taxes.

Those who wouldn’t typically file a return will likely qualify to file for free using IRS Free File, a public-private partnership between the tax agency and several tax preparation and software filing companies. There are two primary free options: one for people with adjusted gross income of $73,000 or less, and one for those who need to file both federal and state taxes.

One benefit of using Free File is that the online form will do the calculations for you.

There’s another free version for people who made $73,000 or more; it does not offer the option to file state taxes. This version conducts only basic calculations with a limited amount of guidance.

To Start the Clock on the Statute of Limitations

Another reason to file even if it’s not required is to get the clock ticking on the statute of limitations. Generally, the IRS has three years from the date you file to audit your tax return, though the limit extends to six years if there is substantial omission of income. If you never file your tax return, you keep the statute of limitations clock from starting.

If you expect a tax refund, you should file as soon as possible. Generally, the IRS allows only three years from the return’s original due date to claim a refund. After the time expires, you can no longer request your tax refund.

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