Who has to file taxes?
The IRS also has different rules for dependents who earn money. And even though it’s children we’re usually talking about, the IRS doesn’t make it easy, setting different earning standards for the two types of income, unearned or earned, that trigger filing requirements. Generally, a child must file a return and pay tax due. But the amounts that trigger the filing depend on the type of income: Earned, generally characterized as a salary, wages or tips. Or unearned, which includes investment interest or dividends, capital gains, unemployment benefits and some trust distributions. If a child (or any unmarried dependent younger than 65) has unearned income of more than $900, that person has to file. A return is also required if the dependent’s earned income is more than $5,450. What if a dependent has both earned and unearned income but doesn’t reach the required filing amount for either? In this case, you must look at the gross income, that is, the total of both earned and unearned amoun
Unfortunately, most of us aren’t that lucky. So just who has to file a tax return? File a return Three things must be considered when determining whether you have to file a return: your age, your filing status and your income. Generally, once you reach a certain income level, the law requires you to file. The amounts are adjusted annually for inflation. For 2008 tax returns, individuals younger than age 65 must file if they make at least: • $8,950 as single filers. • $11,500 as head of household filers. • $17,900 as married couples filing jointly and both husband and wife are younger than 65. The earnings threshold amounts go up a bit for older (65-plus) individuals: • $10,300 for single filers. • $12,850 for head of household filers. • $18,950 for married couples filing jointly where one spouse is age 65 or older. • $20,000 for married couples filing jointly where both partners are 65 or older. The earnings target is the same — $3,500 — for married couples filing separately, regardl
