It’s that time of year again where everyone is scrambling to gather last year’s W-2 forms, 1099s, and other documents needed for filing taxes. With so many different rules and regulations, it’s easy to get lost in the confusion of it all. One of the most common questions that people often ask is, “What is the minimum income to file taxes in 2019?”
Well, the minimum income to file taxes in 2019 depends on a variety of factors such as your age, marital status, and filing status. For example, if you are single and under the age of 65, you must file a tax return if your income is at least $12,200. However, if you are married, filing jointly, and both under the age of 65, the minimum income to file is $24,400.
Knowing the minimum income to file taxes in 2019 is just one piece of the puzzle. There are also other credits, deductions, and exemptions that you may be eligible for. It’s important to keep track of all of your income and expenses throughout the year to ensure that you are getting the most out of your tax return. It may seem overwhelming at first, but with a little bit of knowledge and preparation, filing taxes can be a relatively painless process.
Standard Deduction Amount for Filing Taxes
The standard deduction is a flat amount that the IRS allows taxpayers to subtract from their taxable income. It is one of the most significant tax breaks available to most taxpayers and can reduce the amount of tax owed or increase a refund. The standard deduction amount typically increases each year due to inflation adjustments, and it varies depending on the taxpayer’s filing status and age.
- For tax year 2019, the standard deduction amount for single taxpayers and those who are married filing separately is $12,200.
- For married couples filing jointly, the standard deduction amount is $24,400.
- For those who qualify as head of household, the standard deduction amount is $18,350.
Additionally, the standard deduction amount is increased for those who are blind or over age 65, which results in the following figures:
- Single taxpayers and those who are married filing separately – $1,650
- Married couples filing jointly – $2,600 (one spouse is over 65 or blind) and $3,200 (both spouses over 65 or blind)
- Head of household – $1,650 (one dependent over 65 or blind) or $3,300 (two or more dependents over 65 or blind)
It is essential to understand the standard deduction since it could influence your decision of whether to itemize your deductions when filing your taxes. As a rule of thumb, if the total amount of your itemized deductions is less than the standard deduction amount for your filing status, it’s usually best to take the standard deduction. However, if the total amount of your itemized deductions exceeds the standard deduction amount, you might save more money by itemizing instead.
| Filing Status | Standard Deduction |
|---|---|
| Single | $12,200 |
| Married Filing Jointly | $24,400 |
| Head of Household | $18,350 |
Ultimately, determining which method is best for you depends on your unique financial situation. It’s best to consult with a tax professional or use a tax preparation software to help calculate which option could save you more money.
Who Needs to File Taxes Besides Minimum Income Earners
Even if you don’t meet the minimum income requirement to file taxes, you may still need to file depending on your situation. Here are some other factors that require you to file:
- Earning self-employment income of $400 or more
- Owing Social Security or Medicare taxes on tips or wages not reported to an employer
- Receiving distributions from a Health Savings Account or Archer Medical Savings Account
If any of these apply to you, make sure to file your taxes even if you don’t meet the minimum income requirement. Failure to do so can result in penalties and interest charges.
Other Reasons to File Taxes
There are other reasons why you might want to file taxes even if you don’t have to. For example:
- You may be eligible for a refund if you had taxes withheld from your paycheck or made estimated tax payments
- You could qualify for tax credits like the Earned Income Tax Credit or the Child Tax Credit
- Filing taxes can help you establish a record of your income for future financial transactions like getting a loan or applying for a mortgage
Even if you don’t meet the minimum income requirement to file taxes, it can still be beneficial to file. Consult with a tax professional to determine your filing obligations and potential benefits.
Tax Filing Thresholds for Previous Years
Here is a table that shows the minimum income required to file taxes for the previous four tax years:
| Tax Year | Filing Status | Minimum Income to File Taxes |
|---|---|---|
| 2018 | Single | $12,000 |
| 2017 | Single | $10,400 |
| 2016 | Single | $10,350 |
| 2015 | Single | $10,300 |
Note that these thresholds are subject to change based on inflation and other factors. It’s important to stay up-to-date with current tax laws and requirements.
Ways to File Taxes with Minimum Income
If you have a low income and are considering filing taxes, there may be several options available to you. Here are some ways to file taxes with minimum income:
- File online using free tax preparation software: Some websites offer free tax preparation software that you can use to file your taxes online, even if you have a minimum income. These software programs will guide you through the process, help you identify any tax credits or deductions you may qualify for, and file your taxes for free. Some of the popular websites that offer free tax preparation software include H&R Block, TurboTax, and TaxAct.
- File by mail: If you prefer to file your taxes by mail, you can download the necessary forms from the IRS website or request them by mail. You can then fill out the forms and mail them in with any supporting documents. While this method may take longer than filing online, it is still a viable option if you have a minimum income.
- File through a Volunteer Income Tax Assistance (VITA) program: The IRS offers a program called VITA, which provides free tax preparation services to low-income taxpayers. This program is staffed by volunteers who are trained and certified by the IRS to help with basic tax returns. To find a VITA program near you, visit the IRS website or call their toll-free number.
Do You Need to File Taxes with Minimum Income?
Now that you know some ways to file taxes with minimum income, you may be wondering whether you actually need to file taxes if your income is below a certain threshold. The answer is: it depends on your specific circumstances.
The minimum income required to file taxes in 2019 varies depending on several factors such as your filing status, age, and type of income. For example, if you are single and under the age of 65, you would need to file taxes if your income is at least $12,200. However, if you are single and over the age of 65, that minimum income threshold increases to $13,850.
IRS Filing Requirements for 2019
Here is a table summarizing the minimum income required to file taxes in 2019:
| Filing Status | Age | Minimum Income to File Taxes |
|---|---|---|
| Single | Under 65 | $12,200 |
| Single | 65 or older | $13,850 |
| Married filing jointly | Both spouses under 65 | $24,400 |
| Married filing jointly | One spouse 65 or older | $25,700 |
| Married filing jointly | Both spouses 65 or older | $27,000 |
| Head of household | Under 65 | $18,350 |
| Head of household | 65 or older | $20,000 |
It’s important to note that even if you are not required to file taxes, you may still want to do so in order to claim tax credits or refunds that you are eligible for. Additionally, if you have self-employment income or owe taxes from previous years, you may be required to file taxes regardless of your income level.
Credits and Deductions for Low-Income Tax Filers
As a low-income tax filer, there are several credits and deductions you may be eligible for that can significantly lower your tax bill or even provide a refund. Here are some of the most common ones:
- Earned Income Tax Credit (EITC): This credit is available to individuals and families with low to moderate incomes. The amount of the credit depends on your income, filing status, and number of children, but it can be worth up to $6,557 in 2019.
- Savers Credit: If you’re a low-income earner who contributes to a retirement account, you may be eligible for this credit which can be worth up to $1,000 for individuals or $2,000 for couples filing jointly.
- American Opportunity Tax Credit (AOTC): If you or your dependent is enrolled in college, the AOTC can provide a credit of up to $2,500 per year for the first four years of higher education.
How to Claim Credits and Deductions
If you’re a low-income tax filer, it’s important to make sure you’re taking advantage of all the credits and deductions available to you. Here are some tips:
- Use tax preparation software or consult with a tax professional who can help you identify credits and deductions you may be eligible for.
- Make sure you meet the income and other requirements for each credit or deduction before claiming it.
- File your tax return on time to avoid missing out on credits or deductions that have a deadline.
Income Limits for Filing Taxes
The minimum income to file taxes in 2019 varies depending on your age, filing status, and other factors. Generally, if you’re a single filer under the age of 65, you must file a tax return if your income is at least $12,200. For married couples filing jointly, the minimum income to file taxes is $24,400.
| Filing Status | Minimum Income to File |
|---|---|
| Single | $12,200 |
| Married Filing Jointly | $24,400 |
| Head of Household | $18,350 |
| Married Filing Separately | $5 |
Keep in mind that these are minimum income thresholds and you may still want to file taxes even if you don’t meet them. For example, if you had taxes withheld from your paycheck or qualify for a refundable credit like the EITC, you may be able to get money back by filing a tax return. It’s always a good idea to consult with a tax professional to ensure you’re making the most out of your return.
How to Determine Your Filing Status and Taxable Income
Filing your taxes can be a confusing and overwhelming process, especially if you don’t know where to start. One of the first steps is to determine your filing status, as it will affect your tax liability and the minimum income requirement to file. Here’s how to determine your filing status:
- Single: If you’re unmarried, divorced, or legally separated according to your state law as of December 31 of the tax year, you can file as a single taxpayer. This status generally has the lowest income threshold for filing taxes.
- Married filing jointly: If you’re married, you can choose to file a joint tax return with your spouse. This status allows you to combine your incomes and claim certain deductions and credits that you wouldn’t qualify for otherwise. However, both spouses are equally responsible for paying the taxes owed.
- Married filing separately: If you’re married but don’t want to share the responsibility for your spouse’s tax liability, you can choose to file separately. This status often results in a higher tax bill for both spouses and limits your eligibility for certain deductions and credits.
- Head of household: If you’re unmarried, have dependents, and provide more than half of the household’s financial support, you may qualify for this filing status. It generally has a higher income threshold than filing as a single taxpayer.
- Qualifying widow(er): If your spouse passed away within the last two years, you may be able to file as a qualifying widow(er) with dependent child. This status allows you to use joint filing rates and income thresholds for up to two years after your spouse’s death, provided that you have a dependent child and meet other requirements.
Once you’ve determined your filing status, you’ll need to calculate your taxable income. This is the amount of income that’s subject to taxation after you’ve deducted any eligible expenses, deductions, and credits from your total income. Here’s how to calculate your taxable income:
Add up your total income, including wages, salaries, tips, interest, dividends, capital gains, and other taxable income. Then, subtract any above-the-line deductions that you’re eligible for, such as contributions to a traditional IRA, student loan interest, and alimony payments. The resulting amount is your adjusted gross income (AGI).
From your AGI, subtract either your standard deduction or itemized deductions, whichever is greater. For the tax year 2019, the standard deduction amounts are as follows:
| Filing status | Standard deduction |
|---|---|
| Single | $12,200 |
| Married filing jointly | $24,400 |
| Married filing separately | $12,200 |
| Head of household | $18,350 |
If you have deductible expenses that exceed the standard deduction, you can choose to itemize them instead. This may include deductions for state and local taxes, mortgage interest, charitable contributions, and medical expenses that exceed a certain threshold. However, itemizing can be time-consuming and complicated, so it’s important to determine which method works best for you.
Penalties for Not Filing Taxes When Required
Failing to file your taxes on time or at all could result in facing penalties and interests, which can quickly add up to a substantial sum of money. The IRS imposes penalties for not filing taxes, filing late, and underpaying your taxes. Here are the details of the penalties for not filing taxes:
- Failure-To-File Penalty: If you don’t file your taxes by the deadline, you could face a penalty of 5% of the unpaid taxes for each month your tax return is overdue. The maximum penalty is 25% of the unpaid taxes.
- Failure-To-Pay Penalty: If you don’t pay your taxes, you could face a penalty of 0.5% of the unpaid taxes for each month your tax payment is overdue. The maximum penalty is 25% of the unpaid taxes.
- Accuracy-Related Penalty: This penalty is for taxpayers who file incorrect tax returns or overstated deductions. The penalty is 20% of the underpayment caused by your mistake.
These penalties can add up quickly, so it’s essential to file your taxes on time, even if you can’t pay the full amount you owe. In addition to penalties, you could also be charged interest on the unpaid taxes. The interest rate is determined by the government and is updated quarterly.
If you’re unable to file your taxes by the deadline, you can request an extension to file, which will give you an additional six months to complete your tax return. However, an extension to file does not extend the deadline to pay. You still need to make a payment by the original due date.
Conclusion
Failing to file your taxes when required can lead to significant financial consequences. Be aware of the various penalties and interests that can add up quickly. To avoid any penalties, it’s best to file your taxes on time or request an extension if you need more time.
| Penalties | Failure-To-File | Failure-To-Pay | Accuracy-Related Penalty |
|---|---|---|---|
| Amount | 5% of unpaid taxes per month, maximum 25% | 0.5% of unpaid taxes per month, maximum 25% | 20% of underpayment caused by mistakes |
Keep in mind the penalties mentioned above before you make any decisions related to tax filing. Always reach out to a tax professional if you’re unsure what to do.
Tips for Maximizing Your Tax Refund with Minimal Income
Just because your income falls under the minimum threshold for filing taxes, it doesn’t mean you shouldn’t still strive to maximize your tax refund. Here are a few strategies to consider:
- Take advantage of tax credits: While you may not earn enough to qualify for certain tax credits, such as the Earned Income Tax Credit (EITC), there are others you may still be eligible for, such as the Child Tax Credit or the Retirement Savers Credit. Be sure to investigate all potential credits and deductions to ensure you receive the full refund you’re entitled to.
- Contribute to a retirement account: If you have a traditional IRA or 401(k), contributing to these accounts can lower your taxable income, which could potentially bump you below the filing threshold. Plus, any contributions you make will grow tax-free until you withdraw the money in retirement.
- Donate to charity: Donating to qualified charitable organizations may allow you to itemize deductions, which could lower your taxable income. Plus, donating to a good cause is always a win-win.
By utilizing these strategies, you may be able to increase your refund or even decrease your tax liability, even if you earn a minimal income.
What is the Minimum Income to File Taxes in 2019?
If you’re wondering whether you need to file a tax return, the answer depends on a few factors, including your income, filing status, and age. For tax year 2019, the minimum income to file taxes varies based on filing status:
| Filing Status | Age by 12/31/2019 | Minimum Income to File Taxes |
|---|---|---|
| Single | Under 65 | $12,200 |
| Married filing jointly | Under 65 (both spouses) | $24,400 |
| Married filing separately | Any age | $5 |
| Head of household | Under 65 | $18,350 |
It’s important to note that this minimum income threshold may change in future tax years and may vary based on additional factors, such as whether you receive Social Security benefits or have self-employment income. It’s always best to check with a tax professional or use tax software to determine whether you need to file a return.
FAQs – What is the Minimum Income to File Taxes in 2019?
Q: What is the minimum income to file taxes in 2019?
A: The minimum income to file taxes in 2019 depends on several factors, such as your filing status, age, and type of income.
Q: Do I need to file taxes if I have no income?
A: If you had no income for the year, you may not need to file a tax return. However, if you had self-employment income of $400 or more, you must file a return regardless of your income.
Q: What is the minimum income to file taxes as a single person?
A: If you’re single and under 65, you must file taxes if your income is at least $12,200. If you’re 65 or older, that amount increases to $13,850.
Q: What is the minimum income to file taxes as a married couple?
A: If you’re married and filing jointly, the minimum income to file taxes is $24,400 if you’re both under 65. If one of you is 65 or older, the amount increases to $25,700. If you’re both 65 or older, the minimum income to file taxes is $27,000.
Q: What is the minimum income to file taxes as a dependent?
A: Dependents must file a tax return if they had earned income of $12,200 or more in 2019 or if they had unearned income of $1,100 or more.
Q: Do I need to file state taxes if I don’t meet the minimum income for federal taxes?
A: Minimum income requirements for state taxes vary by state. You should check with your state’s tax agency to see if you need to file a state tax return.
Closing: Thanks for Reading!
We hope these FAQs have helped answer your questions about the minimum income to file taxes in 2019. Remember, tax laws can be complicated, so it’s always best to consult with a tax professional if you have any doubts. Thanks for reading and make sure to visit us again for more helpful tips!