IRS Required Income Level for Filing

Basics

The income thresholds requiring you to file a tax return vary based on age and filing category. For the 2010 tax year, due on April 15, 2011, single people must file a return if they made $9,350, or $10,750 if they are 65 and older. Married couples filing a joint return must file if both are younger than 65 and their combined income is $18,700, if one spouse is 65 or older and their total income is $19,800, or if both are older than 65 and their combined income is $20,900. A married person filing separately must file if his income is $3,650, regardless of age. Those whose filing status is head of household or qualifying widow/widower with a dependent child have their own filing thresholds.

If someone claims you as a dependent, you still might have to file a return with the IRS. Earned income and unearned income, such as Social Security payments and stock dividends, are factors in whether a dependent must file. Single dependents, for example, must file a 2010 return if they received more than $950 in unearned income or $5,700 in earned income for the year. The income thresholds go up of the dependent is at least 65 or blind. Married dependents have similar limits.

You must file taxes in some situations regardless of your income. If you owe taxes such as the alternative minimum tax, a penalty on early withdrawals from an IRA or household employment taxes, for example, you need to send in a return. The same applies if you received any advance earned income payments, net earnings of at least $400 from self-employment or gross wages of at least $128 from a church or similar organization that does not have to pay Social Security and Medicare taxes.

Filing a return might be to your advantage even if you do not have to do so. If your employer withheld wages to cover your taxes, or you made estimated tax payments as an independent contractor, you should file to get money back. Filing also allows you to claim various credits that would net you a refund. For working individuals, available credits include the Making Work Pay and Earned Income credits. Other tax credits are available for parents with dependent children, college students and first-time homebuyers. If you were in any of these categories during the tax year, you should file a return.