12 Must File Taxes Situations!

“Who is required to file a tax return?”, is a ubiquitous question among people earning less or having a casual income. Well, legally speaking, filing a tax return is obligatory not just for a person with a total income exceeding a specified limit but also for someone who may not have income but satisfies certain conditions in the Internal Revenue Code. This post jots down twelve situations in which you’d want to file a tax return with the IRS even if you’re not earning income exceeding the threshold to file taxes.

Video Summary of 12 situations , you must file taxes

1. Minimum income to file taxes 

The basic rule for individuals is that filing taxes is obligatory if your gross income exceeds the standard deduction you are eligible for. If your gross income is equal to or less than the standard deduction, your total income after claiming the standard deduction is either zero or negative. Therefore, you have no tax obligation. For example, if you are an unmarried individual earning more than the standard deduction for the tax year, that is $13,850 for 2023 and $14,600 for 2024, only then must you file a tax return. 

What is Gross Income? The term “Gross income” means all the income you received during the year that was not exempt from tax. The receipts that may be regarded as your income include:

• Income from sources outside the United States
• Income from the sale of your main home, even if you can exclude part or all of it from the tax
• Gains, but not losses, from sales of stock and other securities, and
• Business income reported on IRS Schedule C or Schedule F (not including losses)

If the aggregate of your earnings from various sources is above the threshold, you must file a tax return. You can use any of the ten free tax filing offers approved by the IRS.

The standard deduction for a year depends on filing status, age and whether you are blind. The following table provides a gross income chart for 2023 (due date 18th April 2024) and 2024 (due date 15th April 202).5 You must file a tax return if you earn more than that.

Minimum Income for filing taxes table for 2023 & 2024

Sl.No	Filing taxes required for the taxpayer	If gross income in Year 2023 (filing April 2024) is more than	If gross income in Year 2024 (filing April 2025) is more than
1	Single under age 65	$13,850	$14,600
2	Single age 65 or older OR blind	$15,350	$16,100
3	Single under age 65 & blind	$17,100	$16,550
5	Married filing jointly, both spouses under 65	$27,700	$29,200
6	Married filing jointly, one spouse age 65 or older	$29,200	$30,750
7	Married filing jointly, both spouses 65 or older	$30,700	$32,300
8	Married filing jointly, both spouses under 65 and one is blind	$28,650	$31,150
9	Married filing jointly, one spouse age 65 or older and one is blind	$31,050	$32,700
10	Married filing jointly, one spouse age 65 or older and both are blind	$32,900	$34,650
11	Married filing jointly, both spouses 65 or older and one is blind	$32,550	$34,250
12	Married filing jointly, both spouses 65 or older and both blind	$34,400	$36,200
13	Married filing separately, any age	$13,850	$14,600
14	Head of household under age 65	$20,800	$21,900
15	Head of household under age 65 & blind	$22,650	$23,850
16	Head of household age 65 or older	$22,300	$23,450
17	Head of household age 65 or older and Blind	$24,150	$25,400
18	Qualifying widow(er) under age 65	$27,700	$29,200
19	Qualifying widow(er) under age 65 & blind	$29,550	$32,150
20	Qualifying widow(er) age 65 or older	$29,200	$30,750
21	Qualifying widow(er) age 65 or older & blind	$31,050	$32,700

2. Income threshold for the dependent person

If you are claimed as dependent on another person’s tax return, then you must file a tax return if your unearned income is greater than the standard deduction for dependents, which is greater than:

• $1,300 in 2024 & $1,250 in 2023
• Or the sum of $450 (TY 2024) or $400 (TY 2023)+ the person’s earned income, up to the standard deduction for an unclaimed single taxpayer, which is $14,600 in 2024. ($13,850 in 2023)

Additionally, this rule does not apply if the dependent makes equal to or greater than the standard deduction for their filing status.

3. Refund claim

If you want to claim any tax refund due to you, you need to file a tax return because the IRS will only be able to refund once they find your claim through a valid tax return.

4. Special rule for married filing separately

If you, for any reason, didn’t live with your spouse at the end of the tax year or because your spouse died during the year, you must file a tax return as married filing separately if your gross income was at least $5 regardless of your age.

5. Filing rule for self-employed

You must file taxes with the IRS if your self-employment earnings are $400 or more.

6. Owing tax 

If your employer did not withhold tax on the unreported tips or wages you received from an employer or did not withhold tax on group-term life insurance and additional taxes on health savings accounts, you must pay the tax and file your return.

7. Owe AMT

If you owe Alternative Minimum Tax, you must file tax return.

8. Owe employment tax

If you owe household employment taxes, you must file a tax return. However, if you owe just this tax, then you may avoid filing a tax return if you file Schedule H by itself. The Schedule H of tax Form 1040 or 1040-SR is for reporting household employment taxes.

9. Wages from church

You must also file a tax return if you earned wages of $108.28 or more from a tax-exempt church-controlled organisation.

10. Receipts from HSA or MSA 

Filing tax return is obligatory if you (or your spouse, if filing jointly) received distributions from any of the following :

• HSA distributions (in scope), 
• Archer MSA distributions (Out of scope) or 
• Medicare Advantage MSA distributions (Out of Scope).

11. Repaying homebuyer credit

If you are required to repay a 2008 Homebuyer Credit or other recapture tax, you must file a tax return. See Instructions for Form 1040, Schedule 2

12. Owe taxes on qualified plan

You must file a tax return if you owe additional tax on any qualified plan like an individual retirement arrangement (IRA) or another tax-favoured account. However, the obligation to file a tax return is just because of these reasons; you may avoid filing a tax return by filing Form 5329, which is for reporting additional taxes on IRAs, other qualified retirement plans, modified endowment contracts, Coverdell ESAs, QTPs, Archer MSAs, or HSAs.