IRSinforms citizens from the United States as well as those who are permanent residents and work, may have to file a tax return. However, not all workers in the USA will have to do it. The main reason has to do with the earnings they got during the previous year. Thus, there are some thresholds that if exceeded, they will have to file their 2022 tax return. IRS has established some minimum earnings in order to help those who have not earned so much.
Despite the fact that you do not reach those earnings, you may still want to file it. In this way, you could get some cash back according to IRS. Therefore, you may be getting some extra moneyfor those taxes you had previously paid. Who is eligible for this? It is for those taxpayers who have already had federal income tax taken from their salary. Besides, they could also benefit from it if they had also made estimated tax payments.
Or even if they qualify to get Child Tax Credit or Earned Income tax. There are several things to take into account to know if you have to file a federal income tax or not. Apart from having a look at your gross income, IRS will pay close attention to your age, filing status, or if you are a dependent person or not. For example, if you are single and you were under 65 years old in 2022, your gross income had to be at least 12,950 dollars. Singles who were 65 years old or older had to reach $14,700.
IRS recommends checking if you have to file a tax return in 2023
The first thing IRS advises taxpayers to do is to check their income. Then, they will have to see if they have managed to reach the minimum required. Then you should make up your mind on which filing status suits you best. Those who are already enjoying retirement may also want to see if their income as a retiree is taxable. Some people may have to check it because of the COLAincrease. They may have become taxable after the 8.7% rise.
It is always a great idea to have a look at the different deductions IRS offers. Do not forget that apart from those deductions, you can get credits as well. In this way, you will decrease the amount of money you owe in taxes. If you still are unsure of it, you can always use the tool IRS offers. There is an Interactive Tax Assistant which can help you figure it out.
This Interactive Tax Assistant or ITA will allow you to find out the answers you may have. For instance, to find out if you must file a tax return this year, you just need to answer the different questions this IRS tool poses to you. It will only take up to 12 minutes. However, do not take as many as 15 minutes because you will have to start over again. Do not go back either, because it will not work properly.
In short, making sure we pay our taxes on time is the best idea when it comes to being a good taxpayer. If we want to avoid problems of all kinds, we just have to make our declaration and forget about carelessness. In case you do not have all the necessary knowledge, looking for a financial advisor is the best option.