Who is required to file a US tax return?
Many people may be surprised to learn that they do not have to file a federal tax return in the United States of America. Tax return obligations have threshold levels set by the Internal Revenue Service (IRS), which are similar to tax brackets in their structure. It is generally determined by your level of gross income and your filing status for the tax year whether or not you are required to file. Although you may not be obliged to file because of your gross income, bear in mind that you may still be eligible for a refund if you do file.
The standard deduction is available to the vast majority of taxpayers. The amount of basic tax deductions that you are qualified for is mostly governed by your age and filing status, among other factors. Each year, the government sets these amounts prior to the start of tax filing season, and they are generally adjusted to account for inflation.
Taking advantage of the standard deduction and other applicable deductions helps you lower your taxable income and determine how much of your income is taxed. In most cases, as long as your income is less than your standard deduction and you do not have a sort of income that needs you to file a return for other reasons, such as self-employment income, you will not be required to file a tax return.
For example, if all of the following are true for you in the year 2021, you will not be required to file a tax return:
Single and under the age of 65- You do not have any unusual conditions that necessitate filing a claim (like self-employment income)
- Earning less than $12,550 per year (which is the 2021 standard deduction for a single taxpayer)
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