- Even if you are not working, you may have taxable income, and if the amount is large enough you must file a tax return. For example, while savings or investment principal is not considered income, interest and dividends that money earns are. If you are single and claimed by someone as a dependant, you have to file if you have gross unearned income of $950 or $5,700 of earned income. Single taxpayers who are not dependants don't have to file unless their income reaches $9,350, or $10,750 if age 65. If you are married and file a joint return, the limit is $18,700. If you are 65, it goes up to $19,800 and to $20,900 if your spouse is also 65. If you are married but file a separate return, the limit is $3,650 regardless of age.
- Normally, Social Security isn't considered income for tax purposes, so you don't have to file unless other income such as investment earnings are enough to make filing necessary. When figuring your gross income, do not include Social Security benefits. However, if you do have to file, some of your Social Security benefits may be taxable. To see if this is the case, add half of your benefits to your gross income. If you are married and file a joint return, and the total exceeds $32,000 you have to declare half your Social Security benefits as taxable income. For single filers the threshold is $25,000.
- Students who aren't working still have to file a tax return if their gross income is great enough, given their filing status. Gross income includes wages from student jobs as well as off campus or self employment. In addition, grant or scholarship money used for living expenses rather than going for tuition and other direct education expenses may be taxable and must be added to the gross income.
- If you do not work because you are unemployed, you still may have to file a tax return. Your gross income includes any unemployment compensation you receive. Unemployment compensation for tax purposes includes benefits paid by a company as well as compensation received from the state. Even if your gross income is under the limit for your filing status, you may still have to file if you owe Social Security and Medicare taxes on unemployment benefits.