If you only made a small amount of money this year, you may be wondering if you really need to file a tax return. This is a common question, especially for people who just started working, have a part-time job, work for themselves, or have only worked for a few months.
The answer depends on several things, including how much you earned, your age, your filing status, and where your income came from.
There Is Not One Income Limit for Everyone
There is no single dollar amount that applies to every person. The amount you can earn before you are generally required to file a federal income tax return depends on your filing status and other circumstances. For example, the rules can be different if you are single, married, the head of a household, or someone else’s dependent.
The filing thresholds can also change from one tax year to another.
This is why you should not assume that you don’t need to file simply because you did not make very much money.
Your Type of Income Matters
Where your money comes from can be just as important as how much you made.
Someone who works a regular job will usually receive a W-2 from their employer. Other people may receive 1099 forms because they work as independent contractors or earn money from side jobs.
You may also earn money through:
- Freelance work
- Delivery or rideshare apps
- Online work
- Selling products or services
- A small business
- Multiple part-time jobs
Self-employment has special tax rules. In some situations, you may need to file a tax return even when your income is much lower than the normal filing threshold for someone working a regular W-2 job.
You May Want to File Even If You Don’t Have To
Not being required to file does not always mean you should skip filing. For example, if an employer took federal income tax out of your paycheck, you may need to file a tax return to receive a refund of money that was withheld.
You could also qualify for certain tax credits depending on your income, family situation, and other factors. Before deciding not to file, it is a good idea to check whether filing could put money back in your pocket.
What If You Have More Than One Job or a Side Job?
Taxes can become more confusing when you have several sources of income. Maybe you have a regular job during the week but also do freelance work on weekends. You could have two part-time jobs or earn extra money online.
Even if each job seems small by itself, you generally need to look at your income together when determining your tax responsibilities. You should keep your W-2s, 1099s, receipts, and records of other income so you have the information you need when it is time to prepare your taxes.
Local Tax Can Help You Find Out If You Need to File
If you’re not sure whether you made enough money to file taxes, you don’t have to figure everything out by yourself. Local Tax can review your income and tax documents and help determine whether you need to file. We can also help you understand your W-2s and 1099s, prepare your tax return, and check whether you may qualify for a refund or available tax credits.
We help individuals, first-time tax filers, families, independent workers, and small business owners with their tax needs. Even if you think you didn’t make enough money to file, it can be worth checking before you decide to skip your tax return.
Local Tax
9429 Somerset Blvd
Bellflower, CA 90706
(562) 925-2203
