In the United States, it is generally mandatory to file tax returns every year if you meet certain income thresholds, regardless of whether taxes are owed or not. Specifically, individuals who earned more than a certain amount of income, which varies depending on their filing status and age, are required to file a tax return with the Internal Revenue Service (IRS) each year.
For the tax year 2020, the threshold for single individuals under the age of 65 to file a tax return is $12,400, while the threshold for married couples filing jointly is $24,800. If you meet these income thresholds or exceed them, it is mandatory for you to file a tax return.
Additionally, even if you do not meet the income threshold but had taxes withheld from your paycheck throughout the year, you may be entitled to a refund and must file a tax return to claim it. Failure to do so can result in a loss of the refund.
There are also certain exceptions and limitations to the mandatory filing requirement. For example, individuals who earned income from self-employment of less than $400 in a given year generally do not need to file a tax return unless they meet the income thresholds for their filing status. Certain types of income, such as Social Security benefits, may also be exempt from taxation or may only be partially taxable.
It is important to note that tax laws are complex and subject to change. If you have any questions or concerns about your tax situation, it is recommended that you consult with a licensed tax professional or attorney. They can provide you with personalized legal advice and ensure that you are compliant with all applicable tax laws and regulations.
By
