{"id":3463,"date":"2020-04-10T08:27:29","date_gmt":"2020-04-10T08:27:29","guid":{"rendered":"https:\/\/www.irstaxapp.com\/?p=3463"},"modified":"2020-04-10T08:27:31","modified_gmt":"2020-04-10T08:27:31","slug":"who-must-file-tax-return-to-irs","status":"publish","type":"post","link":"https:\/\/www.irstaxapp.com\/who-must-file-tax-return-to-irs\/","title":{"rendered":"Who must file tax return to IRS?"},"content":{"rendered":"\n<p>If you want to know whether filing tax return is required under law for you , then you must first ask whether you are self employed person or a salaried or a person with income from other sources. This is so because of tax law regarding filing of tax return -Internal Revenue Code <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/6012\" target=\"_blank\" rel=\"noopener\">section 6612<\/a> -provides the different laws regarding filing of tax return for different class of persons.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Tax filing rules for the self-employed<\/h2>\n\n\n\n<p style=\"color:#060606\" class=\"has-text-color has-background has-very-light-gray-background-color\"><strong>A self-employed must&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/www.microsoft.com\/en-us\/microsoft-365\/growth-center\/resources\/tax-tips-self-employed\" target=\"_blank\">file<\/a>&nbsp;a tax return if his net earnings from self-employment is at least $400. <\/strong><\/p>\n\n\n\n<p><em>What does Net earnings mean ? <\/em>It means your total earnings from self-employment after deducting expenses incurred for earning it. You can deduct various kinds of <a href=\"https:\/\/www.irstaxapp.com\/tax-deductions-qualified-business-services\/\">business deductions <\/a>from gross revenue from self employment .<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Is filing tax return good even if your net earning is less than $400?<\/h3>\n\n\n\n<p>The answer is Yes , for two reasons <\/p>\n\n\n\n<ul><li>If you have over all business loss, then you can adjust that business loss with income of future years. The benefit is to person who filed a tax return for the year in which loss was incurred.  <\/li><li>You do not lose anything if you file tax return<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Okay , I am not a business man. What is the filing rules for me.<\/h2>\n\n\n\n<p>If you\u2019re not a businessman or woman or not a self-employed person, the tax filing rules usually depends on your filing status and  the gross income you earned . The gross income threshold given below is for income earned in 2019,for \u00a0which  <strong> you must file   tax return in 2020<\/strong>. <\/p>\n\n\n\n<p style=\"background-color:#fae9b8\" class=\"has-background\"><strong>Please note that the <a href=\"https:\/\/www.irstaxapp.com\/what-tax-deadlines-extended-what-not\/\">due date for filing tax return extended<\/a> to 15th July 2020 on account of Covid-19 pandemic.<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table is-style-regular\"><table class=\"has-subtle-light-gray-background-color has-background\"><thead><tr><th>Tax filing Threshold for 2019<\/th><th>Gross Income<\/th><\/tr><\/thead><tbody><tr><td>Single under age 65<\/td><td>$12,200<\/td><\/tr><tr><td>Single age 65 or older<\/td><td>$13,850<\/td><\/tr><tr><td>Married filing jointly, both spouses under 65<\/td><td>$24,400<\/td><\/tr><tr><td>Married filing jointly, one spouse age 65 or older<\/td><td>$25,700<\/td><\/tr><tr><td>Married filing jointly, both spouses 65 or older<\/td><td>$27,000<\/td><\/tr><tr><td>Married filing separately, any age<\/td><td>$5.00<\/td><\/tr><tr><td>Head of household under age 65<\/td><td>$18,350<\/td><\/tr><tr><td>Head of household age 65 or older<\/td><td>$20,000<\/td><\/tr><tr><td>Qualifying widow(er) under age 65<\/td><td>$24,400<\/td><\/tr><tr><td>Qualifying widow(er) age 65 or older<\/td><td>$25,700<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">What is Gross Income ?<\/h2>\n\n\n\n<p>The term \u201cGross income\u201d  for the purpose of determining if you need to file tax return compulsorily , means all the income you received during the year that was not exempt from tax. The receipts that may be regarded as your income  includes:<\/p>\n\n\n\n<ol><li>Income from sources outside the United States<\/li><li>Income from the sale of your main home even if you can exclude part or all of it from tax<\/li><li>Gains, but not losses, from sales of stock and other securities, and<\/li><li>Business income reported on IRS Schedule C or Schedule F (not including losses)<\/li><\/ol>\n\n\n\n<p>If the aggregate of your earnings from various sources is above the threshold , then you are obliged to file tax return. You can use any of of the <a href=\"https:\/\/www.irstaxapp.com\/free-online-tax-filing-services-2020\/\">10 free tax filing <\/a>offers approved by IRS<\/p>\n\n\n\n<p>Also read <a href=\"https:\/\/www.irstaxapp.com\/who-must-file-estate-tax-return-when\/\">Who Must File Estate Tax Return &amp; When ?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you want to know whether filing tax return is required under law for you , then you must first ask whether you are self employed person or a salaried or a person with income from other sources. This is so because of tax law regarding filing of tax return -Internal Revenue Code section 6612 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3507,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[42],"tags":[1364,1365],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/3463"}],"collection":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/comments?post=3463"}],"version-history":[{"count":0,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/3463\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/media\/3507"}],"wp:attachment":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/media?parent=3463"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/categories?post=3463"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/tags?post=3463"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}