- For most taxpayers, the IRS does not require a tax return if you make less than $1,000. However, the IRS does recommend you file if you had any federal tax withheld, or if you are eligible for tax credits, such as the earned income credit. The IRS instructions for Form 1040 will help you determine if you are eligible for any credits. Otherwise, your filing status dictates the maximum amount of gross income you can earn and still not file a tax return. As of 2010, the ceiling for single filers is $9,350 for taxpayers under 65, and $10,750 for taxpayers 65 and older. If you are married filing jointly, with both spouses under 65, the limit is $18,700, rising to $19,800 if one taxpayer is 65 or older and $20,900 if both are. If you are married filing separately, the limit is $3,650 regardless of your age. Heads of households have a limit of $12,050 if under 65, and $13,450 if older. For a qualifying widower with a dependent child, the limits are $15,050 and $16,150, depending on whether or not the taxpayer was 65 or older.
- If someone else claims you as a dependent on their tax return, then the rules for filing change. Generally, dependents are either children or elderly. However, the computations for determining if you must file can get confusing. If you are under 65 and a dependent, you must file a return if you have unearned income, such as from investments, of $950 or more, or if you have earned income of at least $5,700. You must also file if your gross income, which is your income from all sources, is greater than the larger of either $950 or your earned income plus $300. If you were either blind or 65 and older, you must file with an unearned income exceeding $2,350, an earned income of at least $7,100, or a gross income exceeding the larger of either $2,350 or your unearned income plus $1,700, as of 2011.
- There are a number of instances where you must file a return with the IRS even if your income does not exceed certain levels, as of 2011. Examples include if you received any advance earned income credits from your employer, if you had net self-employment earnings of at least $400, or if you owed any special taxes, such as the alternative minimum tax or any recapture taxes. You must also file if you had wages of at least $108.28 from a church organization that qualified as exempt from employer Social Security and Medicare taxes.
- If you expect to owe at least $1,000 in taxes, the IRS requires you to file estimated taxes. However, you can avoid having to file estimated taxes if you expect at least 90 percent of your current-year taxes, or 100 percent of your prior-year taxes, will be withheld from your current year paychecks, as of 2011.
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