Do I Still File a Tax Return? If you didn't earn any income in the last tax year, you're not obligated to file a tax return. The IRS has minimum income requirements that change annually based on inflation as well as your tax status, such as single, married filing separately or jointly, head of household, etc.
Non-Filer, Zero Income: If you have zero or no income and are not normally required to file a tax return, you can just file a 2021 Tax Return to claim the 2021 Recovery Rebate Credit and be done.
Minimum income to file taxes
Single filing status: $12,550 if under age 65. $14,250 if age 65 or older.
Typically, if a filer files less than $5,000 per year, they don't need to do any filing for the IRS.
Consider your gross income thresholds (Part 1) If your income is less than your standard deduction, you generally don't need to file a return (provided you don't have a type of income that requires you to file a return for other reasons, such as self-employment income).
Non-filers do not have to file a tax return to get a stimulus payment. Some non-filers will get individual stimulus payments automatically based on other information. The IRS will use the information on IRS Form SSA-1099 or RRB-1099 in place of a federal tax return if you do not typically have to file a tax return.
It's perfectly legal to file a tax return even if your income falls below the IRS minimum requirement to file. If you qualify for certain tax credits but owe no tax, you might be able to claim the excess tax credit as a refund when you file your return.
Refundable tax credits can provide you with a tax refund even when you do not work. For example, you may qualify for the Earned Income Tax Credit or the Additional Child Tax Credit, which are refundable tax credits.
If you fail to file your taxes on time, you'll likely encounter what's called a Failure to File Penalty. The penalty for failing to file represents 5% of your unpaid tax liability for each month your return is late, up to 25% of your total unpaid taxes. If you're due a refund, there's no penalty for failure to file.
You may have received unemployment benefits or an EIP (stimulus check) in 2021 due to the COVID-19 pandemic. Unemployment compensation is considered taxable income. You must report unemployment benefits on your tax return if you are required to file.
Even if you have no income, you're eligible to receive a stimulus check. If you are over the income limit, you may be eligible for a partial payment. You don't have to be a U.S. citizen to get a stimulus payment, but you do need a valid Social Security number.
As of the 2021 tax year, the minimum gross income requirements are: Single and under age 65: $12,550. Single and age 65 or older: $14,250. Married filing jointly and both spouses are under age 65: $25,100.
between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits. more than $34,000, up to 85 percent of your benefits may be taxable.
Some people who get Social Security must pay federal income taxes on their benefits. However, no one pays taxes on more than 85% percent of their Social Security benefits. You must pay taxes on your benefits if you file a federal tax return as an “individual” and your “combined income” exceeds $25,000.
The IRS sets new tax filing thresholds each year. If your 2021 gross income was greater than the amounts listed below, then you are required to file taxes. Gross income is any income you pay taxes on. Your age is determined by how old you were on December 31, 2021.
Being a parent can qualify you for the advantageous head of household filing status, too, whether you work or stay at home. Technically, you must be "considered unmarried" to qualify. This means that you didn't live with your spouse at any point – even for one day – during the last six months of the tax year.
The IRS started sending the third Economic Impact Payments to eligible individuals in March 2021 and continued sending payments throughout the year as tax returns were processed. The IRS has issued all third Economic Impact Payments and related plus-up payments.
There is no minimum income needed to qualify for the payment. Households with adjusted gross income (AGI) up to $75,000 for individuals (up to $150,000 if married filing jointly and up to $112,500 if head of household) will receive the full payment.
The next portion of the tax return asks about your income. Since you didn't earn any income for the year, you'll enter a "-0-" in each blank. Your total income will also be "-0-."
President Biden signed the American Rescue Plan Act on March 11, 2021. Provisions in the bill authorized a third round of stimulus checks worth $1,400 for each eligible person ($2,800 for couples), plus an additional $1,400 for each dependent.
Third round of stimulus checks: March 2021
The third payment provided eligible individual taxpayers for a check of up to $1,400, while couples filing jointly could receive a maximum of $2,800.
The second stimulus checks for the COVID-19 relief package are set to total $600 per person, with phase outs based on adjusted gross income limits that are similar to the first relief package. Families also get additional $600 payments for each qualifying dependent under age 17.
The IRS issued three Economic Impact Payments during the coronavirus pandemic for people who were eligible: $1,200 in April 2020. $600 in December 2020/January 2021. $1,400 in March 2021.
The American Rescue Plan Act of 2021, signed into law on March 11, 2021, authorized a third round of Economic Impact Payments and required them to be issued by December 31, 2021. The IRS began issuing these payments on March 12, 2021 and continued through the end of the year.