Are you tired of the stress and hassle that comes with tax filing every year? Well, the good news is that there are some situations where you may not be required to file a tax return at all. Here are some circumstances that could free you from this annual chore:
If Your Income is Below a Certain Threshold
The IRS requires taxpayers to file a tax return if their income exceeds certain thresholds based on their filing status. For example, in 2020, single individuals under age 65 who earned less than $12,400 didn’t need to file a federal tax return.
If You’re Unemployed or Stopped Working During the Year
If you were unemployed for the entire year or stopped working during the year and had no other source of income, then you may not need to file taxes.
If You’re Over Age 65 And Have Only Social Security Benefits
If your only source of income is Social Security benefits and your gross income doesn’t exceed $25,000 (or $32,000 if married filing jointly), then chances are good you won’t have to pay any taxes on those benefits.
These are just a few scenarios where it might be possible for you to skip tax season altogether. However, keep in mind that each individual’s financial situation is unique and there may be other factors at play. That said, it’s always worth checking with an experienced tax professional before making any decisions regarding your taxes.
By understanding when you can kiss tax filing goodbye and potentially save yourself time and headaches every year!
FAQs
Q: Who is eligible to stop filing taxes?
A: Not everyone is eligible to stop filing taxes. However, if you have a very low income or no income at all, and you don’t meet any other IRS requirements that would require you to file tax returns (e.g., self-employment income over a certain threshold), then you may be able to stop filing taxes.
Q: What happens if I continue to file taxes even though I don’t need to?
A: If you continue to file tax returns even though it’s not required, there generally aren’t any negative consequences. In fact, in some cases, it might be a good idea to keep filing anyway — for example, if you pay estimated taxes throughout the year and want the option of getting a refund later on.
Q: How can I determine whether I need to file tax returns each year?
A: The best way to figure out whether you need to file tax returns each year is by checking the qualifying criteria set forth by the IRS. Generally speaking, factors like your age, marital status, dependents, sources of income (including Social Security benefits), and deductions will all play a role in determining whether or not you’re required to file each year.
